Correlation Between Shanghai Phichem and Jiangsu Yanghe
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By analyzing existing cross correlation between Shanghai Phichem Material and Jiangsu Yanghe Brewery, you can compare the effects of market volatilities on Shanghai Phichem and Jiangsu Yanghe 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 Shanghai Phichem with a short position of Jiangsu Yanghe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Phichem and Jiangsu Yanghe.
Diversification Opportunities for Shanghai Phichem and Jiangsu Yanghe
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shanghai and Jiangsu is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Phichem Material and Jiangsu Yanghe Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yanghe Brewery and Shanghai Phichem 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 Shanghai Phichem Material are associated (or correlated) with Jiangsu Yanghe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yanghe Brewery has no effect on the direction of Shanghai Phichem i.e., Shanghai Phichem and Jiangsu Yanghe go up and down completely randomly.
Pair Corralation between Shanghai Phichem and Jiangsu Yanghe
Assuming the 90 days trading horizon Shanghai Phichem Material is expected to under-perform the Jiangsu Yanghe. In addition to that, Shanghai Phichem is 1.77 times more volatile than Jiangsu Yanghe Brewery. It trades about -0.35 of its total potential returns per unit of risk. Jiangsu Yanghe Brewery is currently generating about -0.25 per unit of volatility. If you would invest 8,564 in Jiangsu Yanghe Brewery on October 11, 2024 and sell it today you would lose (555.00) from holding Jiangsu Yanghe Brewery or give up 6.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Phichem Material vs. Jiangsu Yanghe Brewery
Performance |
| Timeline |
| Shanghai Phichem Material |
| Jiangsu Yanghe Brewery |
Shanghai Phichem and Jiangsu Yanghe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Phichem and Jiangsu Yanghe
The main advantage of trading using opposite Shanghai Phichem and Jiangsu Yanghe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Phichem position performs unexpectedly, Jiangsu Yanghe 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 Jiangsu Yanghe will offset losses from the drop in Jiangsu Yanghe's long position.| Shanghai Phichem vs. Harbin Air Conditioning | Shanghai Phichem vs. Miracll Chemicals Co | Shanghai Phichem vs. Linewell Software Co | Shanghai Phichem vs. Wuxi Chemical Equipment |
| Jiangsu Yanghe vs. Jiangyin Haida Rubber | Jiangsu Yanghe vs. Southchip Semiconductor Technology | Jiangsu Yanghe vs. StarPower Semiconductor | Jiangsu Yanghe vs. Shanghai Phichem Material |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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