Correlation Between Sichuan Jinshi and Shandong Polymer
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By analyzing existing cross correlation between Sichuan Jinshi Technology and Shandong Polymer Biochemicals, you can compare the effects of market volatilities on Sichuan Jinshi 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 Sichuan Jinshi with a short position of Shandong Polymer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Jinshi and Shandong Polymer.
Diversification Opportunities for Sichuan Jinshi and Shandong Polymer
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sichuan and Shandong is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Jinshi Technology 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 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 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 Sichuan Jinshi i.e., Sichuan Jinshi and Shandong Polymer go up and down completely randomly.
Pair Corralation between Sichuan Jinshi and Shandong Polymer
Assuming the 90 days trading horizon Sichuan Jinshi Technology is expected to under-perform the Shandong Polymer. In addition to that, Sichuan Jinshi is 1.43 times more volatile than Shandong Polymer Biochemicals. It trades about -0.11 of its total potential returns per unit of risk. Shandong Polymer Biochemicals is currently generating about 0.01 per unit of volatility. If you would invest 434.00 in Shandong Polymer Biochemicals on October 30, 2024 and sell it today you would earn a total of 0.00 from holding Shandong Polymer Biochemicals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Jinshi Technology vs. Shandong Polymer Biochemicals
Performance |
| Timeline |
| Sichuan Jinshi Technology |
| Shandong Polymer Bio |
Sichuan Jinshi and Shandong Polymer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Jinshi and Shandong Polymer
The main advantage of trading using opposite Sichuan Jinshi and Shandong Polymer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Jinshi 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.| Sichuan Jinshi vs. Xiandai Investment Co | Sichuan Jinshi vs. Nuode Investment Co | Sichuan Jinshi vs. Harbin Hatou Investment | Sichuan Jinshi vs. Postal Savings 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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