Correlation Between Zhejiang Construction and Shandong Polymer
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhejiang Construction Investment and Shandong Polymer Biochemicals, you can compare the effects of market volatilities on Zhejiang Construction 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 Zhejiang Construction with a short position of Shandong Polymer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Construction and Shandong Polymer.
Diversification Opportunities for Zhejiang Construction and Shandong Polymer
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Shandong is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Construction Investme 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 Zhejiang Construction 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 Zhejiang Construction Investment 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 Zhejiang Construction i.e., Zhejiang Construction and Shandong Polymer go up and down completely randomly.
Pair Corralation between Zhejiang Construction and Shandong Polymer
Assuming the 90 days trading horizon Zhejiang Construction Investment is expected to under-perform the Shandong Polymer. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Construction Investment is 1.33 times less risky than Shandong Polymer. The stock trades about -0.28 of its potential returns per unit of risk. The Shandong Polymer Biochemicals is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 412.00 in Shandong Polymer Biochemicals on October 26, 2024 and sell it today you would earn a total of 24.00 from holding Shandong Polymer Biochemicals or generate 5.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Construction Investme vs. Shandong Polymer Biochemicals
Performance |
| Timeline |
| Zhejiang Construction |
| Shandong Polymer Bio |
Zhejiang Construction and Shandong Polymer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Construction and Shandong Polymer
The main advantage of trading using opposite Zhejiang Construction and Shandong Polymer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Construction 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.| Zhejiang Construction vs. Agricultural Bank of | Zhejiang Construction vs. Industrial and Commercial | Zhejiang Construction vs. Bank of China | Zhejiang Construction vs. China Construction Bank |
| Shandong Polymer vs. Zijin Mining Group | Shandong Polymer vs. Wanhua Chemical Group | Shandong Polymer vs. Baoshan Iron Steel | Shandong Polymer 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |