Correlation Between Shandong Polymer and Hangzhou Minsheng
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shandong Polymer Biochemicals and Hangzhou Minsheng Healthcare, you can compare the effects of market volatilities on Shandong Polymer and Hangzhou Minsheng 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 Hangzhou Minsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Polymer and Hangzhou Minsheng.
Diversification Opportunities for Shandong Polymer and Hangzhou Minsheng
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shandong and Hangzhou is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Polymer Biochemicals and Hangzhou Minsheng Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Minsheng 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 Hangzhou Minsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Minsheng has no effect on the direction of Shandong Polymer i.e., Shandong Polymer and Hangzhou Minsheng go up and down completely randomly.
Pair Corralation between Shandong Polymer and Hangzhou Minsheng
Assuming the 90 days trading horizon Shandong Polymer Biochemicals is expected to generate 1.27 times more return on investment than Hangzhou Minsheng. However, Shandong Polymer is 1.27 times more volatile than Hangzhou Minsheng Healthcare. It trades about 0.01 of its potential returns per unit of risk. Hangzhou Minsheng Healthcare is currently generating about -0.2 per unit of risk. If you would invest 434.00 in Shandong Polymer Biochemicals on October 30, 2024 and sell it today you would earn a total of 0.00 from holding Shandong Polymer Biochemicals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Polymer Biochemicals vs. Hangzhou Minsheng Healthcare
Performance |
| Timeline |
| Shandong Polymer Bio |
| Hangzhou Minsheng |
Shandong Polymer and Hangzhou Minsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Polymer and Hangzhou Minsheng
The main advantage of trading using opposite Shandong Polymer and Hangzhou Minsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Polymer position performs unexpectedly, Hangzhou Minsheng 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 Hangzhou Minsheng will offset losses from the drop in Hangzhou Minsheng's long position.| Shandong Polymer vs. Zijin Mining Group | Shandong Polymer vs. Wanhua Chemical Group | Shandong Polymer vs. Baoshan Iron Steel | Shandong Polymer vs. Shandong Gold Mining |
| Hangzhou Minsheng vs. Aurora Optoelectronics Co | Hangzhou Minsheng vs. Hainan Haiqi Transportation | Hangzhou Minsheng vs. Weihai Honglin Electronic | Hangzhou Minsheng vs. TongFu Microelectronics Co |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |