Correlation Between Shandong Polymer and Dongxing Sec
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By analyzing existing cross correlation between Shandong Polymer Biochemicals and Dongxing Sec Co, you can compare the effects of market volatilities on Shandong Polymer and Dongxing Sec 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 Dongxing Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Polymer and Dongxing Sec.
Diversification Opportunities for Shandong Polymer and Dongxing Sec
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and Dongxing is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Polymer Biochemicals and Dongxing Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongxing Sec 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 Dongxing Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongxing Sec has no effect on the direction of Shandong Polymer i.e., Shandong Polymer and Dongxing Sec go up and down completely randomly.
Pair Corralation between Shandong Polymer and Dongxing Sec
Assuming the 90 days trading horizon Shandong Polymer Biochemicals is expected to under-perform the Dongxing Sec. In addition to that, Shandong Polymer is 1.28 times more volatile than Dongxing Sec Co. It trades about -0.01 of its total potential returns per unit of risk. Dongxing Sec Co is currently generating about 0.04 per unit of volatility. If you would invest 828.00 in Dongxing Sec Co on October 29, 2024 and sell it today you would earn a total of 276.00 from holding Dongxing Sec Co or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Polymer Biochemicals vs. Dongxing Sec Co
Performance |
| Timeline |
| Shandong Polymer Bio |
| Dongxing Sec |
Shandong Polymer and Dongxing Sec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Polymer and Dongxing Sec
The main advantage of trading using opposite Shandong Polymer and Dongxing Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Polymer position performs unexpectedly, Dongxing Sec 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 Dongxing Sec will offset losses from the drop in Dongxing Sec's long position.| Shandong Polymer vs. Fiberhome Telecommunication Technologies | Shandong Polymer vs. Guangxi Wuzhou Communications | Shandong Polymer vs. Dr Peng Telecom | Shandong Polymer vs. HanS Laser Tech |
| Dongxing Sec vs. Nexchip Semiconductor Corp | Dongxing Sec vs. Bohai Leasing Co | Dongxing Sec vs. GigaDevice SemiconductorBeiji | Dongxing Sec 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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