Correlation Between Hainan Shuangcheng and Yingde Greatchem
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By analyzing existing cross correlation between Hainan Shuangcheng Pharmaceut and Yingde Greatchem Chemicals, you can compare the effects of market volatilities on Hainan Shuangcheng and Yingde Greatchem 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 Hainan Shuangcheng with a short position of Yingde Greatchem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Shuangcheng and Yingde Greatchem.
Diversification Opportunities for Hainan Shuangcheng and Yingde Greatchem
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hainan and Yingde is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Shuangcheng Pharmaceut and Yingde Greatchem Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yingde Greatchem Che and Hainan Shuangcheng 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 Hainan Shuangcheng Pharmaceut are associated (or correlated) with Yingde Greatchem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yingde Greatchem Che has no effect on the direction of Hainan Shuangcheng i.e., Hainan Shuangcheng and Yingde Greatchem go up and down completely randomly.
Pair Corralation between Hainan Shuangcheng and Yingde Greatchem
Assuming the 90 days trading horizon Hainan Shuangcheng Pharmaceut is expected to generate 1.32 times more return on investment than Yingde Greatchem. However, Hainan Shuangcheng is 1.32 times more volatile than Yingde Greatchem Chemicals. It trades about 0.08 of its potential returns per unit of risk. Yingde Greatchem Chemicals is currently generating about -0.02 per unit of risk. If you would invest 813.00 in Hainan Shuangcheng Pharmaceut on August 25, 2024 and sell it today you would earn a total of 1,896 from holding Hainan Shuangcheng Pharmaceut or generate 233.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 72.12% |
| Values | Daily Returns |
Hainan Shuangcheng Pharmaceut vs. Yingde Greatchem Chemicals
Performance |
| Timeline |
| Hainan Shuangcheng |
| Yingde Greatchem Che |
Hainan Shuangcheng and Yingde Greatchem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Shuangcheng and Yingde Greatchem
The main advantage of trading using opposite Hainan Shuangcheng and Yingde Greatchem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Shuangcheng position performs unexpectedly, Yingde Greatchem 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 Yingde Greatchem will offset losses from the drop in Yingde Greatchem's long position.| Hainan Shuangcheng vs. China State Construction | Hainan Shuangcheng vs. Poly Real Estate | Hainan Shuangcheng vs. China Vanke Co | Hainan Shuangcheng vs. China Merchants Shekou |
| Yingde Greatchem vs. Zijin Mining Group | Yingde Greatchem vs. Wanhua Chemical Group | Yingde Greatchem vs. Baoshan Iron Steel | Yingde Greatchem 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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