Correlation Between Aba Chemicals and Shenzhen Bioeasy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Aba Chemicals Corp and Shenzhen Bioeasy Biotechnology, you can compare the effects of market volatilities on Aba Chemicals and Shenzhen Bioeasy 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 Shenzhen Bioeasy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aba Chemicals and Shenzhen Bioeasy.
Diversification Opportunities for Aba Chemicals and Shenzhen Bioeasy
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aba and Shenzhen is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Aba Chemicals Corp and Shenzhen Bioeasy Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Bioeasy Bio 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 Shenzhen Bioeasy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Bioeasy Bio has no effect on the direction of Aba Chemicals i.e., Aba Chemicals and Shenzhen Bioeasy go up and down completely randomly.
Pair Corralation between Aba Chemicals and Shenzhen Bioeasy
Assuming the 90 days trading horizon Aba Chemicals Corp is expected to under-perform the Shenzhen Bioeasy. But the stock apears to be less risky and, when comparing its historical volatility, Aba Chemicals Corp is 1.94 times less risky than Shenzhen Bioeasy. The stock trades about -0.1 of its potential returns per unit of risk. The Shenzhen Bioeasy Biotechnology is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 925.00 in Shenzhen Bioeasy Biotechnology on September 12, 2024 and sell it today you would earn a total of 82.00 from holding Shenzhen Bioeasy Biotechnology or generate 8.86% 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. Shenzhen Bioeasy Biotechnology
Performance |
| Timeline |
| Aba Chemicals Corp |
| Shenzhen Bioeasy Bio |
Aba Chemicals and Shenzhen Bioeasy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aba Chemicals and Shenzhen Bioeasy
The main advantage of trading using opposite Aba Chemicals and Shenzhen Bioeasy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aba Chemicals position performs unexpectedly, Shenzhen Bioeasy 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 Shenzhen Bioeasy will offset losses from the drop in Shenzhen Bioeasy's long position.| Aba Chemicals vs. Semiconductor Manufacturing Electronics | Aba Chemicals vs. GigaDevice SemiconductorBeiji | Aba Chemicals vs. Qinghaihuading Industrial Co | Aba Chemicals vs. MayAir Technology Co |
| Shenzhen Bioeasy vs. Cultural Investment Holdings | Shenzhen Bioeasy vs. Gome Telecom Equipment | Shenzhen Bioeasy vs. Holitech Technology Co | Shenzhen Bioeasy vs. Zotye Automobile Co |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |