Correlation Between Chengdu Xinzhu and Shandong Polymer
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chengdu Xinzhu RoadBridge and Shandong Polymer Biochemicals, you can compare the effects of market volatilities on Chengdu Xinzhu and Shandong Polymer 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 Chengdu Xinzhu with a short position of Shandong Polymer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xinzhu and Shandong Polymer.
Diversification Opportunities for Chengdu Xinzhu and Shandong Polymer
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Chengdu and Shandong is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xinzhu RoadBridge and Shandong Polymer Biochemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Polymer Bio and Chengdu Xinzhu 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 Chengdu Xinzhu RoadBridge are associated (or correlated) with Shandong Polymer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Polymer Bio has no effect on the direction of Chengdu Xinzhu i.e., Chengdu Xinzhu and Shandong Polymer go up and down completely randomly.
Pair Corralation between Chengdu Xinzhu and Shandong Polymer
Assuming the 90 days trading horizon Chengdu Xinzhu is expected to generate 2.02 times less return on investment than Shandong Polymer. In addition to that, Chengdu Xinzhu is 2.55 times more volatile than Shandong Polymer Biochemicals. It trades about 0.07 of its total potential returns per unit of risk. Shandong Polymer Biochemicals is currently generating about 0.36 per unit of volatility. If you would invest 396.00 in Shandong Polymer Biochemicals on November 5, 2024 and sell it today you would earn a total of 38.00 from holding Shandong Polymer Biochemicals or generate 9.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xinzhu RoadBridge vs. Shandong Polymer Biochemicals
Performance |
| Timeline |
| Chengdu Xinzhu RoadBridge |
| Shandong Polymer Bio |
Chengdu Xinzhu and Shandong Polymer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xinzhu and Shandong Polymer
The main advantage of trading using opposite Chengdu Xinzhu and Shandong Polymer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xinzhu position performs unexpectedly, Shandong Polymer 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 Polymer will offset losses from the drop in Shandong Polymer's long position.| Chengdu Xinzhu vs. Ming Yang Smart | Chengdu Xinzhu vs. 159681 | Chengdu Xinzhu vs. 159005 | Chengdu Xinzhu vs. Loctek Ergonomic Technology |
| Shandong Polymer vs. Tongxing Environmental Protection | Shandong Polymer vs. Lander Sports Development | Shandong Polymer vs. Thinkingdom Media Group | Shandong Polymer vs. Simei Media Co |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |