Correlation Between Shenyang Blue and Chahua Modern
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By analyzing existing cross correlation between Shenyang Blue Silver and Chahua Modern Housewares, you can compare the effects of market volatilities on Shenyang Blue and Chahua Modern 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 Chahua Modern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Blue and Chahua Modern.
Diversification Opportunities for Shenyang Blue and Chahua Modern
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shenyang and Chahua is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Blue Silver and Chahua Modern Housewares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chahua Modern Housewares 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 Chahua Modern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chahua Modern Housewares has no effect on the direction of Shenyang Blue i.e., Shenyang Blue and Chahua Modern go up and down completely randomly.
Pair Corralation between Shenyang Blue and Chahua Modern
Assuming the 90 days trading horizon Shenyang Blue Silver is expected to under-perform the Chahua Modern. But the stock apears to be less risky and, when comparing its historical volatility, Shenyang Blue Silver is 1.24 times less risky than Chahua Modern. The stock trades about -0.21 of its potential returns per unit of risk. The Chahua Modern Housewares is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,187 in Chahua Modern Housewares on October 30, 2024 and sell it today you would earn a total of 99.00 from holding Chahua Modern Housewares or generate 4.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Blue Silver vs. Chahua Modern Housewares
Performance |
| Timeline |
| Shenyang Blue Silver |
| Chahua Modern Housewares |
Shenyang Blue and Chahua Modern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Blue and Chahua Modern
The main advantage of trading using opposite Shenyang Blue and Chahua Modern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Blue position performs unexpectedly, Chahua Modern 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 Chahua Modern will offset losses from the drop in Chahua Modern's long position.| Shenyang Blue vs. Anhui Transport Consulting | Shenyang Blue vs. Silkroad Visual Technology | Shenyang Blue vs. Dazhong Transportation Group | Shenyang Blue vs. Shanghai Broadband Technology |
| Chahua Modern vs. Shandong Longquan Pipeline | Chahua Modern vs. Invengo Information Technology | Chahua Modern vs. Longmaster Information Tech | Chahua Modern vs. Guangzhou Ruoyuchen Information |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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