Correlation Between Shanghai Yaoji and Aba Chemicals
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Yaoji Playing and Aba Chemicals Corp, you can compare the effects of market volatilities on Shanghai Yaoji and Aba Chemicals 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 Shanghai Yaoji with a short position of Aba Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yaoji and Aba Chemicals.
Diversification Opportunities for Shanghai Yaoji and Aba Chemicals
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Aba is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yaoji Playing and Aba Chemicals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aba Chemicals Corp and Shanghai Yaoji 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 Shanghai Yaoji Playing are associated (or correlated) with Aba Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aba Chemicals Corp has no effect on the direction of Shanghai Yaoji i.e., Shanghai Yaoji and Aba Chemicals go up and down completely randomly.
Pair Corralation between Shanghai Yaoji and Aba Chemicals
Assuming the 90 days trading horizon Shanghai Yaoji Playing is expected to generate 1.01 times more return on investment than Aba Chemicals. However, Shanghai Yaoji is 1.01 times more volatile than Aba Chemicals Corp. It trades about 0.07 of its potential returns per unit of risk. Aba Chemicals Corp is currently generating about -0.01 per unit of risk. If you would invest 1,362 in Shanghai Yaoji Playing on September 2, 2024 and sell it today you would earn a total of 1,816 from holding Shanghai Yaoji Playing or generate 133.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yaoji Playing vs. Aba Chemicals Corp
Performance |
| Timeline |
| Shanghai Yaoji Playing |
| Aba Chemicals Corp |
Shanghai Yaoji and Aba Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yaoji and Aba Chemicals
The main advantage of trading using opposite Shanghai Yaoji and Aba Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yaoji position performs unexpectedly, Aba Chemicals 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 Aba Chemicals will offset losses from the drop in Aba Chemicals' long position.| Shanghai Yaoji vs. Nanjing Putian Telecommunications | Shanghai Yaoji vs. Shenzhen Hifuture Electric | Shanghai Yaoji vs. Tianjin Realty Development | Shanghai Yaoji vs. Shenyang Huitian Thermal |
| Aba Chemicals vs. Zijin Mining Group | Aba Chemicals vs. Wanhua Chemical Group | Aba Chemicals vs. Baoshan Iron Steel | Aba Chemicals vs. Shandong Gold Mining |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Stocks Directory Find actively traded stocks across global markets |