Correlation Between Shenyang Blue and Chengdu Kanghua
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By analyzing existing cross correlation between Shenyang Blue Silver and Chengdu Kanghua Biological, you can compare the effects of market volatilities on Shenyang Blue and Chengdu Kanghua 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 Chengdu Kanghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Blue and Chengdu Kanghua.
Diversification Opportunities for Shenyang Blue and Chengdu Kanghua
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenyang and Chengdu is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Blue Silver and Chengdu Kanghua Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Kanghua Biol 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 Chengdu Kanghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Kanghua Biol has no effect on the direction of Shenyang Blue i.e., Shenyang Blue and Chengdu Kanghua go up and down completely randomly.
Pair Corralation between Shenyang Blue and Chengdu Kanghua
Assuming the 90 days trading horizon Shenyang Blue Silver is expected to under-perform the Chengdu Kanghua. In addition to that, Shenyang Blue is 1.6 times more volatile than Chengdu Kanghua Biological. It trades about -0.26 of its total potential returns per unit of risk. Chengdu Kanghua Biological is currently generating about -0.21 per unit of volatility. If you would invest 6,497 in Chengdu Kanghua Biological on September 12, 2024 and sell it today you would lose (687.00) from holding Chengdu Kanghua Biological or give up 10.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Shenyang Blue Silver vs. Chengdu Kanghua Biological
Performance |
| Timeline |
| Shenyang Blue Silver |
| Chengdu Kanghua Biol |
Shenyang Blue and Chengdu Kanghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Blue and Chengdu Kanghua
The main advantage of trading using opposite Shenyang Blue and Chengdu Kanghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Blue position performs unexpectedly, Chengdu Kanghua 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 Chengdu Kanghua will offset losses from the drop in Chengdu Kanghua's long position.| Shenyang Blue vs. Agricultural Bank of | Shenyang Blue vs. Industrial and Commercial | Shenyang Blue vs. Bank of China | Shenyang Blue vs. PetroChina Co Ltd |
| Chengdu Kanghua vs. Heilongjiang Publishing Media | Chengdu Kanghua vs. China Publishing Media | Chengdu Kanghua vs. Qtone Education Group | Chengdu Kanghua vs. XinJiang GuoTong Pipeline |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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