Correlation Between Sichuan Yahua and Shenzhen Agricultural
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By analyzing existing cross correlation between Sichuan Yahua Industrial and Shenzhen Agricultural Products, you can compare the effects of market volatilities on Sichuan Yahua and Shenzhen Agricultural 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 Sichuan Yahua with a short position of Shenzhen Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Yahua and Shenzhen Agricultural.
Diversification Opportunities for Sichuan Yahua and Shenzhen Agricultural
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sichuan and Shenzhen is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Yahua Industrial and Shenzhen Agricultural Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Agricultural and Sichuan Yahua 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 Sichuan Yahua Industrial are associated (or correlated) with Shenzhen Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Agricultural has no effect on the direction of Sichuan Yahua i.e., Sichuan Yahua and Shenzhen Agricultural go up and down completely randomly.
Pair Corralation between Sichuan Yahua and Shenzhen Agricultural
Assuming the 90 days trading horizon Sichuan Yahua Industrial is expected to under-perform the Shenzhen Agricultural. In addition to that, Sichuan Yahua is 1.42 times more volatile than Shenzhen Agricultural Products. It trades about -0.04 of its total potential returns per unit of risk. Shenzhen Agricultural Products is currently generating about 0.05 per unit of volatility. If you would invest 541.00 in Shenzhen Agricultural Products on September 12, 2024 and sell it today you would earn a total of 231.00 from holding Shenzhen Agricultural Products or generate 42.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Yahua Industrial vs. Shenzhen Agricultural Products
Performance |
| Timeline |
| Sichuan Yahua Industrial |
| Shenzhen Agricultural |
Sichuan Yahua and Shenzhen Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Yahua and Shenzhen Agricultural
The main advantage of trading using opposite Sichuan Yahua and Shenzhen Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Yahua position performs unexpectedly, Shenzhen Agricultural 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 Shenzhen Agricultural will offset losses from the drop in Shenzhen Agricultural's long position.| Sichuan Yahua vs. Zijin Mining Group | Sichuan Yahua vs. Wanhua Chemical Group | Sichuan Yahua vs. Baoshan Iron Steel | Sichuan Yahua vs. Rongsheng Petrochemical Co |
| Shenzhen Agricultural vs. Linewell Software Co | Shenzhen Agricultural vs. Huafa Industrial Co | Shenzhen Agricultural vs. Chengtun Mining Group | Shenzhen Agricultural vs. Sichuan Yahua Industrial |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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