Correlation Between Aba Chemicals and Cangzhou Mingzhu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Aba Chemicals Corp and Cangzhou Mingzhu Plastic, you can compare the effects of market volatilities on Aba Chemicals and Cangzhou Mingzhu 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 Cangzhou Mingzhu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aba Chemicals and Cangzhou Mingzhu.
Diversification Opportunities for Aba Chemicals and Cangzhou Mingzhu
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aba and Cangzhou is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Aba Chemicals Corp and Cangzhou Mingzhu Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cangzhou Mingzhu Plastic 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 Cangzhou Mingzhu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cangzhou Mingzhu Plastic has no effect on the direction of Aba Chemicals i.e., Aba Chemicals and Cangzhou Mingzhu go up and down completely randomly.
Pair Corralation between Aba Chemicals and Cangzhou Mingzhu
Assuming the 90 days trading horizon Aba Chemicals Corp is expected to generate 1.99 times more return on investment than Cangzhou Mingzhu. However, Aba Chemicals is 1.99 times more volatile than Cangzhou Mingzhu Plastic. It trades about 0.02 of its potential returns per unit of risk. Cangzhou Mingzhu Plastic is currently generating about 0.02 per unit of risk. If you would invest 788.00 in Aba Chemicals Corp on September 4, 2024 and sell it today you would earn a total of 29.00 from holding Aba Chemicals Corp or generate 3.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aba Chemicals Corp vs. Cangzhou Mingzhu Plastic
Performance |
| Timeline |
| Aba Chemicals Corp |
| Cangzhou Mingzhu Plastic |
Aba Chemicals and Cangzhou Mingzhu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aba Chemicals and Cangzhou Mingzhu
The main advantage of trading using opposite Aba Chemicals and Cangzhou Mingzhu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aba Chemicals position performs unexpectedly, Cangzhou Mingzhu 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 Cangzhou Mingzhu will offset losses from the drop in Cangzhou Mingzhu's long position.| Aba Chemicals vs. Shenzhen Bioeasy Biotechnology | Aba Chemicals vs. Shenzhen Noposion Agrochemicals | Aba Chemicals vs. Dymatic Chemicals | Aba Chemicals vs. North Huajin Chemical |
| Cangzhou Mingzhu vs. Zhejiang Kingland Pipeline | Cangzhou Mingzhu vs. Air China Ltd | Cangzhou Mingzhu vs. Fujian Forecam Optics | Cangzhou Mingzhu vs. iSoftStone Information Technology |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |