Correlation Between Shandong Polymer and Shandong Sinoglory
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By analyzing existing cross correlation between Shandong Polymer Biochemicals and Shandong Sinoglory Health, you can compare the effects of market volatilities on Shandong Polymer and Shandong Sinoglory 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 Shandong Sinoglory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Polymer and Shandong Sinoglory.
Diversification Opportunities for Shandong Polymer and Shandong Sinoglory
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shandong and Shandong is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Polymer Biochemicals and Shandong Sinoglory Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sinoglory Health 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 Shandong Sinoglory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sinoglory Health has no effect on the direction of Shandong Polymer i.e., Shandong Polymer and Shandong Sinoglory go up and down completely randomly.
Pair Corralation between Shandong Polymer and Shandong Sinoglory
Assuming the 90 days trading horizon Shandong Polymer Biochemicals is expected to under-perform the Shandong Sinoglory. In addition to that, Shandong Polymer is 1.16 times more volatile than Shandong Sinoglory Health. It trades about -0.01 of its total potential returns per unit of risk. Shandong Sinoglory Health is currently generating about 0.0 per unit of volatility. If you would invest 1,410 in Shandong Sinoglory Health on September 12, 2024 and sell it today you would lose (80.00) from holding Shandong Sinoglory Health or give up 5.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Polymer Biochemicals vs. Shandong Sinoglory Health
Performance |
| Timeline |
| Shandong Polymer Bio |
| Shandong Sinoglory Health |
Shandong Polymer and Shandong Sinoglory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Polymer and Shandong Sinoglory
The main advantage of trading using opposite Shandong Polymer and Shandong Sinoglory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Polymer position performs unexpectedly, Shandong Sinoglory 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 Shandong Sinoglory will offset losses from the drop in Shandong Sinoglory's long position.| Shandong Polymer vs. Zijin Mining Group | Shandong Polymer vs. Wanhua Chemical Group | Shandong Polymer vs. Baoshan Iron Steel | Shandong Polymer vs. Rongsheng Petrochemical Co |
| Shandong Sinoglory vs. China Petroleum Chemical | Shandong Sinoglory vs. PetroChina Co Ltd | Shandong Sinoglory vs. China State Construction | Shandong Sinoglory vs. China Railway Group |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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