Correlation Between Shanghai Phichem and Changchun BCHT
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By analyzing existing cross correlation between Shanghai Phichem Material and Changchun BCHT Biotechnology, you can compare the effects of market volatilities on Shanghai Phichem and Changchun BCHT 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 Changchun BCHT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Phichem and Changchun BCHT.
Diversification Opportunities for Shanghai Phichem and Changchun BCHT
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shanghai and Changchun is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Phichem Material and Changchun BCHT Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun BCHT Biote 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 Changchun BCHT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun BCHT Biote has no effect on the direction of Shanghai Phichem i.e., Shanghai Phichem and Changchun BCHT go up and down completely randomly.
Pair Corralation between Shanghai Phichem and Changchun BCHT
Assuming the 90 days trading horizon Shanghai Phichem Material is expected to generate 1.27 times more return on investment than Changchun BCHT. However, Shanghai Phichem is 1.27 times more volatile than Changchun BCHT Biotechnology. It trades about 0.0 of its potential returns per unit of risk. Changchun BCHT Biotechnology is currently generating about -0.07 per unit of risk. If you would invest 1,787 in Shanghai Phichem Material on October 14, 2024 and sell it today you would lose (329.00) from holding Shanghai Phichem Material or give up 18.41% 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. Changchun BCHT Biotechnology
Performance |
| Timeline |
| Shanghai Phichem Material |
| Changchun BCHT Biote |
Shanghai Phichem and Changchun BCHT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Phichem and Changchun BCHT
The main advantage of trading using opposite Shanghai Phichem and Changchun BCHT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Phichem position performs unexpectedly, Changchun BCHT 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 Changchun BCHT will offset losses from the drop in Changchun BCHT'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 |
| Changchun BCHT vs. Shanghai Phichem Material | Changchun BCHT vs. Malion New Materials | Changchun BCHT vs. Anhui Transport Consulting | Changchun BCHT vs. Hainan Haiqi Transportation |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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