Correlation Between Shenyang Blue and Jiangyin Haida
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By analyzing existing cross correlation between Shenyang Blue Silver and Jiangyin Haida Rubber, you can compare the effects of market volatilities on Shenyang Blue and Jiangyin Haida 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 Shenyang Blue with a short position of Jiangyin Haida. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Blue and Jiangyin Haida.
Diversification Opportunities for Shenyang Blue and Jiangyin Haida
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenyang and Jiangyin is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Blue Silver and Jiangyin Haida Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangyin Haida Rubber and Shenyang Blue 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 Shenyang Blue Silver are associated (or correlated) with Jiangyin Haida. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangyin Haida Rubber has no effect on the direction of Shenyang Blue i.e., Shenyang Blue and Jiangyin Haida go up and down completely randomly.
Pair Corralation between Shenyang Blue and Jiangyin Haida
Assuming the 90 days trading horizon Shenyang Blue Silver is expected to under-perform the Jiangyin Haida. In addition to that, Shenyang Blue is 1.31 times more volatile than Jiangyin Haida Rubber. It trades about -0.43 of its total potential returns per unit of risk. Jiangyin Haida Rubber is currently generating about -0.51 per unit of volatility. If you would invest 1,106 in Jiangyin Haida Rubber on October 12, 2024 and sell it today you would lose (223.00) from holding Jiangyin Haida Rubber or give up 20.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Blue Silver vs. Jiangyin Haida Rubber
Performance |
| Timeline |
| Shenyang Blue Silver |
| Jiangyin Haida Rubber |
Shenyang Blue and Jiangyin Haida Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Blue and Jiangyin Haida
The main advantage of trading using opposite Shenyang Blue and Jiangyin Haida positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Blue position performs unexpectedly, Jiangyin Haida 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 Jiangyin Haida will offset losses from the drop in Jiangyin Haida's long position.| Shenyang Blue vs. Biwin Storage Technology | Shenyang Blue vs. PetroChina Co Ltd | Shenyang Blue vs. Industrial and Commercial | Shenyang Blue vs. China Construction Bank |
| Jiangyin Haida vs. Fujian Oriental Silver | Jiangyin Haida vs. Shenyang Blue Silver | Jiangyin Haida vs. Jiangxi Naipu Mining | Jiangyin Haida vs. Shaanxi Meineng Clean |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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