Correlation Between Sichuan Jinshi and Lianhe Chemical
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By analyzing existing cross correlation between Sichuan Jinshi Technology and Lianhe Chemical Technology, you can compare the effects of market volatilities on Sichuan Jinshi and Lianhe Chemical 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 Jinshi with a short position of Lianhe Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Jinshi and Lianhe Chemical.
Diversification Opportunities for Sichuan Jinshi and Lianhe Chemical
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sichuan and Lianhe is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Jinshi Technology and Lianhe Chemical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lianhe Chemical Tech and Sichuan Jinshi 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 Jinshi Technology are associated (or correlated) with Lianhe Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lianhe Chemical Tech has no effect on the direction of Sichuan Jinshi i.e., Sichuan Jinshi and Lianhe Chemical go up and down completely randomly.
Pair Corralation between Sichuan Jinshi and Lianhe Chemical
Assuming the 90 days trading horizon Sichuan Jinshi Technology is expected to generate 1.03 times more return on investment than Lianhe Chemical. However, Sichuan Jinshi is 1.03 times more volatile than Lianhe Chemical Technology. It trades about 0.14 of its potential returns per unit of risk. Lianhe Chemical Technology is currently generating about 0.08 per unit of risk. If you would invest 493.00 in Sichuan Jinshi Technology on January 27, 2025 and sell it today you would earn a total of 349.00 from holding Sichuan Jinshi Technology or generate 70.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Jinshi Technology vs. Lianhe Chemical Technology
Performance |
| Timeline |
| Sichuan Jinshi Technology |
| Lianhe Chemical Tech |
Sichuan Jinshi and Lianhe Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Jinshi and Lianhe Chemical
The main advantage of trading using opposite Sichuan Jinshi and Lianhe Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Jinshi position performs unexpectedly, Lianhe Chemical 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 Lianhe Chemical will offset losses from the drop in Lianhe Chemical's long position.| Sichuan Jinshi vs. Tinavi Medical Technologies | Sichuan Jinshi vs. HeNan Splendor Science | Sichuan Jinshi vs. Unisplendour Corp | Sichuan Jinshi vs. GRG Banking Equipment |
| Lianhe Chemical vs. Guangdong Shenglu Telecommunication | Lianhe Chemical vs. Shengda Mining Co | Lianhe Chemical vs. Sunwave Communications Co | Lianhe Chemical vs. Kuang Chi Technologies |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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