Correlation Between Shanghai Phichem and Chengdu Spaceon
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By analyzing existing cross correlation between Shanghai Phichem Material and Chengdu Spaceon Electronics, you can compare the effects of market volatilities on Shanghai Phichem and Chengdu Spaceon 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 Chengdu Spaceon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Phichem and Chengdu Spaceon.
Diversification Opportunities for Shanghai Phichem and Chengdu Spaceon
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shanghai and Chengdu is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Phichem Material and Chengdu Spaceon Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Spaceon Elec 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 Chengdu Spaceon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Spaceon Elec has no effect on the direction of Shanghai Phichem i.e., Shanghai Phichem and Chengdu Spaceon go up and down completely randomly.
Pair Corralation between Shanghai Phichem and Chengdu Spaceon
Assuming the 90 days trading horizon Shanghai Phichem Material is expected to under-perform the Chengdu Spaceon. In addition to that, Shanghai Phichem is 1.24 times more volatile than Chengdu Spaceon Electronics. It trades about -0.08 of its total potential returns per unit of risk. Chengdu Spaceon Electronics is currently generating about -0.02 per unit of volatility. If you would invest 1,578 in Chengdu Spaceon Electronics on October 16, 2024 and sell it today you would lose (48.00) from holding Chengdu Spaceon Electronics or give up 3.04% 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. Chengdu Spaceon Electronics
Performance |
| Timeline |
| Shanghai Phichem Material |
| Chengdu Spaceon Elec |
Shanghai Phichem and Chengdu Spaceon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Phichem and Chengdu Spaceon
The main advantage of trading using opposite Shanghai Phichem and Chengdu Spaceon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Phichem position performs unexpectedly, Chengdu Spaceon 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 Spaceon will offset losses from the drop in Chengdu Spaceon's long position.| Shanghai Phichem vs. Guangxi Wuzhou Communications | Shanghai Phichem vs. Eastroc Beverage Group | Shanghai Phichem vs. Chongqing Brewery Co | Shanghai Phichem vs. Great Sun Foods Co |
| Chengdu Spaceon vs. Qingdao Haier Biomedical | Chengdu Spaceon vs. Shanghai Sanyou Medical | Chengdu Spaceon vs. Chison Medical Technologies | Chengdu Spaceon 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 Stocks Directory module to find actively traded stocks across global markets.
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