Correlation Between Shandong Intco and Chengdu Kanghua
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shandong Intco Medical and Chengdu Kanghua Biological, you can compare the effects of market volatilities on Shandong Intco and Chengdu Kanghua 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 Shandong Intco with a short position of Chengdu Kanghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Intco and Chengdu Kanghua.
Diversification Opportunities for Shandong Intco and Chengdu Kanghua
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and Chengdu is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Intco Medical and Chengdu Kanghua Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Kanghua Biol and Shandong Intco 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 Shandong Intco Medical are associated (or correlated) with Chengdu Kanghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Kanghua Biol has no effect on the direction of Shandong Intco i.e., Shandong Intco and Chengdu Kanghua go up and down completely randomly.
Pair Corralation between Shandong Intco and Chengdu Kanghua
Assuming the 90 days trading horizon Shandong Intco Medical is expected to generate 1.06 times more return on investment than Chengdu Kanghua. However, Shandong Intco is 1.06 times more volatile than Chengdu Kanghua Biological. It trades about -0.15 of its potential returns per unit of risk. Chengdu Kanghua Biological is currently generating about -0.2 per unit of risk. If you would invest 3,355 in Shandong Intco Medical on September 3, 2024 and sell it today you would lose (727.00) from holding Shandong Intco Medical or give up 21.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Intco Medical vs. Chengdu Kanghua Biological
Performance |
| Timeline |
| Shandong Intco Medical |
| Chengdu Kanghua Biol |
Shandong Intco and Chengdu Kanghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Intco and Chengdu Kanghua
The main advantage of trading using opposite Shandong Intco and Chengdu Kanghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Intco position performs unexpectedly, Chengdu Kanghua 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 Kanghua will offset losses from the drop in Chengdu Kanghua's long position.| Shandong Intco vs. Chengdu Kanghua Biological | Shandong Intco vs. Beijing Wantai Biological | Shandong Intco vs. Suzhou Novoprotein Scientific | Shandong Intco vs. Aluminum Corp of |
| Chengdu Kanghua vs. Chengdu Xinzhu RoadBridge | Chengdu Kanghua vs. China Life Insurance | Chengdu Kanghua vs. Shaanxi Broadcast TV | Chengdu Kanghua vs. Tianshan Aluminum Group |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Commodity Directory Find actively traded commodities issued by global exchanges |