Correlation Between Shandong Polymer and Sichuan Jinshi
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By analyzing existing cross correlation between Shandong Polymer Biochemicals and Sichuan Jinshi Technology, you can compare the effects of market volatilities on Shandong Polymer and Sichuan Jinshi 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 Sichuan Jinshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Polymer and Sichuan Jinshi.
Diversification Opportunities for Shandong Polymer and Sichuan Jinshi
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and Sichuan is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Polymer Biochemicals and Sichuan Jinshi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Jinshi Technology 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 Sichuan Jinshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Jinshi Technology has no effect on the direction of Shandong Polymer i.e., Shandong Polymer and Sichuan Jinshi go up and down completely randomly.
Pair Corralation between Shandong Polymer and Sichuan Jinshi
Assuming the 90 days trading horizon Shandong Polymer Biochemicals is expected to under-perform the Sichuan Jinshi. In addition to that, Shandong Polymer is 1.04 times more volatile than Sichuan Jinshi Technology. It trades about -0.01 of its total potential returns per unit of risk. Sichuan Jinshi Technology is currently generating about -0.01 per unit of volatility. If you would invest 867.00 in Sichuan Jinshi Technology on October 13, 2024 and sell it today you would lose (202.00) from holding Sichuan Jinshi Technology or give up 23.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Polymer Biochemicals vs. Sichuan Jinshi Technology
Performance |
| Timeline |
| Shandong Polymer Bio |
| Sichuan Jinshi Technology |
Shandong Polymer and Sichuan Jinshi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Polymer and Sichuan Jinshi
The main advantage of trading using opposite Shandong Polymer and Sichuan Jinshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Polymer position performs unexpectedly, Sichuan Jinshi 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 Sichuan Jinshi will offset losses from the drop in Sichuan Jinshi's long position.| Shandong Polymer vs. Industrial Bank Co | Shandong Polymer vs. Postal Savings Bank | Shandong Polymer vs. Hefei Metalforming Mach | Shandong Polymer vs. Tongling Nonferrous Metals |
| Sichuan Jinshi vs. Dongfeng Automobile Co | Sichuan Jinshi vs. Ningbo Jintian Copper | Sichuan Jinshi vs. Offshore Oil Engineering | Sichuan Jinshi vs. Huizhou Speed Wireless |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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