Correlation Between Shandong Polymer and Zhende Medical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shandong Polymer Biochemicals and Zhende Medical Co, you can compare the effects of market volatilities on Shandong Polymer and Zhende Medical 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 Zhende Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Polymer and Zhende Medical.
Diversification Opportunities for Shandong Polymer and Zhende Medical
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shandong and Zhende is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Polymer Biochemicals and Zhende Medical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhende Medical 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 Zhende Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhende Medical has no effect on the direction of Shandong Polymer i.e., Shandong Polymer and Zhende Medical go up and down completely randomly.
Pair Corralation between Shandong Polymer and Zhende Medical
Assuming the 90 days trading horizon Shandong Polymer Biochemicals is expected to generate 2.76 times more return on investment than Zhende Medical. However, Shandong Polymer is 2.76 times more volatile than Zhende Medical Co. It trades about 0.07 of its potential returns per unit of risk. Zhende Medical Co is currently generating about -0.08 per unit of risk. If you would invest 438.00 in Shandong Polymer Biochemicals on August 28, 2024 and sell it today you would earn a total of 21.00 from holding Shandong Polymer Biochemicals or generate 4.79% 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. Zhende Medical Co
Performance |
Timeline |
Shandong Polymer Bio |
Zhende Medical |
Shandong Polymer and Zhende Medical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shandong Polymer and Zhende Medical
The main advantage of trading using opposite Shandong Polymer and Zhende Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Polymer position performs unexpectedly, Zhende Medical 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 Zhende Medical will offset losses from the drop in Zhende Medical'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 |
Zhende Medical vs. Bank of China | Zhende Medical vs. Kweichow Moutai Co | Zhende Medical vs. PetroChina Co Ltd | Zhende Medical vs. Bank of Communications |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
CEOs Directory Screen CEOs from public companies around the world |