Correlation Between Aba Chemicals and Shenyang Huitian
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By analyzing existing cross correlation between Aba Chemicals Corp and Shenyang Huitian Thermal, you can compare the effects of market volatilities on Aba Chemicals and Shenyang Huitian 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 Aba Chemicals with a short position of Shenyang Huitian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aba Chemicals and Shenyang Huitian.
Diversification Opportunities for Aba Chemicals and Shenyang Huitian
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aba and Shenyang is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Aba Chemicals Corp and Shenyang Huitian Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Huitian Thermal and Aba Chemicals 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 Aba Chemicals Corp are associated (or correlated) with Shenyang Huitian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Huitian Thermal has no effect on the direction of Aba Chemicals i.e., Aba Chemicals and Shenyang Huitian go up and down completely randomly.
Pair Corralation between Aba Chemicals and Shenyang Huitian
Assuming the 90 days trading horizon Aba Chemicals Corp is expected to under-perform the Shenyang Huitian. But the stock apears to be less risky and, when comparing its historical volatility, Aba Chemicals Corp is 1.04 times less risky than Shenyang Huitian. The stock trades about -0.29 of its potential returns per unit of risk. The Shenyang Huitian Thermal is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 350.00 in Shenyang Huitian Thermal on August 27, 2024 and sell it today you would earn a total of 5.00 from holding Shenyang Huitian Thermal or generate 1.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aba Chemicals Corp vs. Shenyang Huitian Thermal
Performance |
| Timeline |
| Aba Chemicals Corp |
| Shenyang Huitian Thermal |
Aba Chemicals and Shenyang Huitian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aba Chemicals and Shenyang Huitian
The main advantage of trading using opposite Aba Chemicals and Shenyang Huitian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aba Chemicals position performs unexpectedly, Shenyang Huitian 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 Shenyang Huitian will offset losses from the drop in Shenyang Huitian's long position.| Aba Chemicals vs. Success Electronics | Aba Chemicals vs. Integrated Electronic Systems | Aba Chemicals vs. Nexchip Semiconductor Corp | Aba Chemicals vs. Beijing Kaiwen Education |
| Shenyang Huitian vs. Agricultural Bank of | Shenyang Huitian vs. Industrial and Commercial | Shenyang Huitian vs. Bank of China | Shenyang Huitian vs. PetroChina Co Ltd |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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