Correlation Between Shandong Polymer and Hubei Xingfa
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shandong Polymer Biochemicals and Hubei Xingfa Chemicals, you can compare the effects of market volatilities on Shandong Polymer and Hubei Xingfa 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 Hubei Xingfa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Polymer and Hubei Xingfa.
Diversification Opportunities for Shandong Polymer and Hubei Xingfa
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shandong and Hubei is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Polymer Biochemicals and Hubei Xingfa Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Xingfa Chemicals 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 Hubei Xingfa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Xingfa Chemicals has no effect on the direction of Shandong Polymer i.e., Shandong Polymer and Hubei Xingfa go up and down completely randomly.
Pair Corralation between Shandong Polymer and Hubei Xingfa
Assuming the 90 days trading horizon Shandong Polymer Biochemicals is expected to generate 1.44 times more return on investment than Hubei Xingfa. However, Shandong Polymer is 1.44 times more volatile than Hubei Xingfa Chemicals. It trades about 0.13 of its potential returns per unit of risk. Hubei Xingfa Chemicals is currently generating about 0.03 per unit of risk. If you would invest 401.00 in Shandong Polymer Biochemicals on August 25, 2024 and sell it today you would earn a total of 44.00 from holding Shandong Polymer Biochemicals or generate 10.97% 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. Hubei Xingfa Chemicals
Performance |
| Timeline |
| Shandong Polymer Bio |
| Hubei Xingfa Chemicals |
Shandong Polymer and Hubei Xingfa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Polymer and Hubei Xingfa
The main advantage of trading using opposite Shandong Polymer and Hubei Xingfa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Polymer position performs unexpectedly, Hubei Xingfa 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 Hubei Xingfa will offset losses from the drop in Hubei Xingfa's long position.| Shandong Polymer vs. Zijin Mining Group | Shandong Polymer vs. Wanhua Chemical Group | Shandong Polymer vs. Shandong Gold Mining | Shandong Polymer vs. Inner Mongolia BaoTou |
| Hubei Xingfa vs. Guangzhou Ruoyuchen Information | Hubei Xingfa vs. Northking Information Technology | Hubei Xingfa vs. Tonghua Grape Wine | Hubei Xingfa vs. Xiamen Goldenhome 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Commodity Directory Find actively traded commodities issued by global exchanges |