Correlation Between Shanghai Phichem and TianJin 712
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By analyzing existing cross correlation between Shanghai Phichem Material and TianJin 712 Communication, you can compare the effects of market volatilities on Shanghai Phichem and TianJin 712 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 TianJin 712. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Phichem and TianJin 712.
Diversification Opportunities for Shanghai Phichem and TianJin 712
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and TianJin is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Phichem Material and TianJin 712 Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TianJin 712 Communication 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 TianJin 712. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TianJin 712 Communication has no effect on the direction of Shanghai Phichem i.e., Shanghai Phichem and TianJin 712 go up and down completely randomly.
Pair Corralation between Shanghai Phichem and TianJin 712
Assuming the 90 days trading horizon Shanghai Phichem Material is expected to generate 0.61 times more return on investment than TianJin 712. However, Shanghai Phichem Material is 1.64 times less risky than TianJin 712. It trades about -0.34 of its potential returns per unit of risk. TianJin 712 Communication is currently generating about -0.32 per unit of risk. If you would invest 1,704 in Shanghai Phichem Material on October 14, 2024 and sell it today you would lose (246.00) from holding Shanghai Phichem Material or give up 14.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Phichem Material vs. TianJin 712 Communication
Performance |
| Timeline |
| Shanghai Phichem Material |
| TianJin 712 Communication |
Shanghai Phichem and TianJin 712 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Phichem and TianJin 712
The main advantage of trading using opposite Shanghai Phichem and TianJin 712 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Phichem position performs unexpectedly, TianJin 712 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 TianJin 712 will offset losses from the drop in TianJin 712's long position.| Shanghai Phichem vs. TianJin 712 Communication | Shanghai Phichem vs. Miracll Chemicals Co | Shanghai Phichem vs. Shenyang Chemical Industry | Shanghai Phichem vs. Guangdong Shenglu Telecommunication |
| TianJin 712 vs. Telling Telecommunication Holding | TianJin 712 vs. StarPower Semiconductor | TianJin 712 vs. Runjian Communication Co | TianJin 712 vs. Union Semiconductor Co |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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