Correlation Between Shandong Polymer and Niutech Environment
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shandong Polymer Biochemicals and Niutech Environment Technology, you can compare the effects of market volatilities on Shandong Polymer and Niutech Environment 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 Niutech Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Polymer and Niutech Environment.
Diversification Opportunities for Shandong Polymer and Niutech Environment
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shandong and Niutech is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Polymer Biochemicals and Niutech Environment Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Niutech Environment 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 Niutech Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Niutech Environment has no effect on the direction of Shandong Polymer i.e., Shandong Polymer and Niutech Environment go up and down completely randomly.
Pair Corralation between Shandong Polymer and Niutech Environment
Assuming the 90 days trading horizon Shandong Polymer Biochemicals is expected to generate 1.51 times more return on investment than Niutech Environment. However, Shandong Polymer is 1.51 times more volatile than Niutech Environment Technology. It trades about 0.08 of its potential returns per unit of risk. Niutech Environment Technology is currently generating about 0.01 per unit of risk. If you would invest 440.00 in Shandong Polymer Biochemicals on September 1, 2024 and sell it today you would earn a total of 24.00 from holding Shandong Polymer Biochemicals or generate 5.45% 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. Niutech Environment Technology
Performance |
| Timeline |
| Shandong Polymer Bio |
| Niutech Environment |
Shandong Polymer and Niutech Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Polymer and Niutech Environment
The main advantage of trading using opposite Shandong Polymer and Niutech Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Polymer position performs unexpectedly, Niutech Environment 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 Niutech Environment will offset losses from the drop in Niutech Environment's long position.| Shandong Polymer vs. Everdisplay Optronics Shanghai | Shandong Polymer vs. Keeson Technology Corp | Shandong Polymer vs. Uxi Unicomp Technology | Shandong Polymer vs. Threes Company Media |
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 Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |