Correlation Between Shanghai Yaoji and Liaoning Dingjide
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Yaoji Playing and Liaoning Dingjide Petrochemical, you can compare the effects of market volatilities on Shanghai Yaoji and Liaoning Dingjide 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 Liaoning Dingjide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yaoji and Liaoning Dingjide.
Diversification Opportunities for Shanghai Yaoji and Liaoning Dingjide
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Liaoning is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yaoji Playing and Liaoning Dingjide Petrochemica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liaoning Dingjide 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 Liaoning Dingjide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liaoning Dingjide has no effect on the direction of Shanghai Yaoji i.e., Shanghai Yaoji and Liaoning Dingjide go up and down completely randomly.
Pair Corralation between Shanghai Yaoji and Liaoning Dingjide
Assuming the 90 days trading horizon Shanghai Yaoji Playing is expected to under-perform the Liaoning Dingjide. In addition to that, Shanghai Yaoji is 1.38 times more volatile than Liaoning Dingjide Petrochemical. It trades about -0.39 of its total potential returns per unit of risk. Liaoning Dingjide Petrochemical is currently generating about -0.13 per unit of volatility. If you would invest 3,500 in Liaoning Dingjide Petrochemical on October 11, 2024 and sell it today you would lose (239.00) from holding Liaoning Dingjide Petrochemical or give up 6.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yaoji Playing vs. Liaoning Dingjide Petrochemica
Performance |
| Timeline |
| Shanghai Yaoji Playing |
| Liaoning Dingjide |
Shanghai Yaoji and Liaoning Dingjide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yaoji and Liaoning Dingjide
The main advantage of trading using opposite Shanghai Yaoji and Liaoning Dingjide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yaoji position performs unexpectedly, Liaoning Dingjide 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 Liaoning Dingjide will offset losses from the drop in Liaoning Dingjide's long position.| Shanghai Yaoji vs. Luyin Investment Group | Shanghai Yaoji vs. Sportsoul Co Ltd | Shanghai Yaoji vs. Hunan Investment Group | Shanghai Yaoji vs. Bus Online Co |
| Liaoning Dingjide vs. Xinjiang Baodi Mining | Liaoning Dingjide vs. Jiangxi Naipu Mining | Liaoning Dingjide vs. Hainan Mining Co | Liaoning Dingjide vs. Gem Year Industrial 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |