Correlation Between Shandong Polymer and Qingdao Port
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By analyzing existing cross correlation between Shandong Polymer Biochemicals and Qingdao Port International, you can compare the effects of market volatilities on Shandong Polymer and Qingdao Port 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 Qingdao Port. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Polymer and Qingdao Port.
Diversification Opportunities for Shandong Polymer and Qingdao Port
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shandong and Qingdao is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Polymer Biochemicals and Qingdao Port International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Port Interna 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 Qingdao Port. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Port Interna has no effect on the direction of Shandong Polymer i.e., Shandong Polymer and Qingdao Port go up and down completely randomly.
Pair Corralation between Shandong Polymer and Qingdao Port
Assuming the 90 days trading horizon Shandong Polymer is expected to generate 3.59 times less return on investment than Qingdao Port. In addition to that, Shandong Polymer is 1.62 times more volatile than Qingdao Port International. It trades about 0.01 of its total potential returns per unit of risk. Qingdao Port International is currently generating about 0.07 per unit of volatility. If you would invest 522.00 in Qingdao Port International on September 14, 2024 and sell it today you would earn a total of 324.00 from holding Qingdao Port International or generate 62.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Polymer Biochemicals vs. Qingdao Port International
Performance |
| Timeline |
| Shandong Polymer Bio |
| Qingdao Port Interna |
Shandong Polymer and Qingdao Port Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Polymer and Qingdao Port
The main advantage of trading using opposite Shandong Polymer and Qingdao Port positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Polymer position performs unexpectedly, Qingdao Port 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 Qingdao Port will offset losses from the drop in Qingdao Port's long position.| Shandong Polymer vs. Eastern Communications Co | Shandong Polymer vs. Songz Automobile Air | Shandong Polymer vs. China National Software | Shandong Polymer vs. Iat Automobile Technology |
| Qingdao Port vs. Guilin Seamild Foods | Qingdao Port vs. Do Fluoride Chemicals Co | Qingdao Port vs. China Aluminum International | Qingdao Port vs. Shandong Polymer Biochemicals |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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