Correlation Between Aba Chemicals and Shanghai Yaoji
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By analyzing existing cross correlation between Aba Chemicals Corp and Shanghai Yaoji Playing, you can compare the effects of market volatilities on Aba Chemicals and Shanghai Yaoji 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 Shanghai Yaoji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aba Chemicals and Shanghai Yaoji.
Diversification Opportunities for Aba Chemicals and Shanghai Yaoji
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aba and Shanghai is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Aba Chemicals Corp and Shanghai Yaoji Playing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yaoji Playing 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 Shanghai Yaoji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yaoji Playing has no effect on the direction of Aba Chemicals i.e., Aba Chemicals and Shanghai Yaoji go up and down completely randomly.
Pair Corralation between Aba Chemicals and Shanghai Yaoji
Assuming the 90 days trading horizon Aba Chemicals Corp is expected to under-perform the Shanghai Yaoji. But the stock apears to be less risky and, when comparing its historical volatility, Aba Chemicals Corp is 1.01 times less risky than Shanghai Yaoji. The stock trades about -0.01 of its potential returns per unit of risk. The Shanghai Yaoji Playing is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,362 in Shanghai Yaoji Playing on September 2, 2024 and sell it today you would earn a total of 1,816 from holding Shanghai Yaoji Playing or generate 133.33% 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. Shanghai Yaoji Playing
Performance |
| Timeline |
| Aba Chemicals Corp |
| Shanghai Yaoji Playing |
Aba Chemicals and Shanghai Yaoji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aba Chemicals and Shanghai Yaoji
The main advantage of trading using opposite Aba Chemicals and Shanghai Yaoji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aba Chemicals position performs unexpectedly, Shanghai Yaoji 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 Shanghai Yaoji will offset losses from the drop in Shanghai Yaoji's long position.| Aba Chemicals vs. Zijin Mining Group | Aba Chemicals vs. Wanhua Chemical Group | Aba Chemicals vs. Baoshan Iron Steel | Aba Chemicals vs. Shandong Gold Mining |
| Shanghai Yaoji vs. Nanjing Putian Telecommunications | Shanghai Yaoji vs. Shenzhen Hifuture Electric | Shanghai Yaoji vs. Tianjin Realty Development | Shanghai Yaoji vs. Shenyang Huitian Thermal |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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