Correlation Between Shandong Polymer and XinJiang GuoTong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shandong Polymer Biochemicals and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on Shandong Polymer and XinJiang GuoTong and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Shandong Polymer with a short position of XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Polymer and XinJiang GuoTong.
Diversification Opportunities for Shandong Polymer and XinJiang GuoTong
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shandong and XinJiang is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Polymer Biochemicals and XinJiang GuoTong Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XinJiang GuoTong Pipeline and Shandong Polymer is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Shandong Polymer Biochemicals are associated (or correlated) with XinJiang GuoTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XinJiang GuoTong Pipeline has no effect on the direction of Shandong Polymer i.e., Shandong Polymer and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between Shandong Polymer and XinJiang GuoTong
Assuming the 90 days trading horizon Shandong Polymer Biochemicals is expected to generate 1.44 times more return on investment than XinJiang GuoTong. However, Shandong Polymer is 1.44 times more volatile than XinJiang GuoTong Pipeline. It trades about 0.07 of its potential returns per unit of risk. XinJiang GuoTong Pipeline is currently generating about 0.01 per unit of risk. If you would invest 438.00 in Shandong Polymer Biochemicals on August 29, 2024 and sell it today you would earn a total of 20.00 from holding Shandong Polymer Biochemicals or generate 4.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Polymer Biochemicals vs. XinJiang GuoTong Pipeline
Performance |
| Timeline |
| Shandong Polymer Bio |
| XinJiang GuoTong Pipeline |
Shandong Polymer and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Polymer and XinJiang GuoTong
The main advantage of trading using opposite Shandong Polymer and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Polymer position performs unexpectedly, XinJiang GuoTong can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in XinJiang GuoTong will offset losses from the drop in XinJiang GuoTong's long position.| Shandong Polymer vs. Hubeiyichang Transportation Group | Shandong Polymer vs. Ping An Insurance | Shandong Polymer vs. Shuhua Sports Co | Shandong Polymer vs. Chengdu Spaceon Electronics |
| XinJiang GuoTong vs. PetroChina Co Ltd | XinJiang GuoTong vs. China State Construction | XinJiang GuoTong vs. China Mobile Limited | XinJiang GuoTong vs. Industrial and Commercial |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |