Correlation Between Yingde Greatchem and Shandong Longquan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Yingde Greatchem Chemicals and Shandong Longquan Pipeline, you can compare the effects of market volatilities on Yingde Greatchem and Shandong Longquan 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 Yingde Greatchem with a short position of Shandong Longquan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yingde Greatchem and Shandong Longquan.
Diversification Opportunities for Yingde Greatchem and Shandong Longquan
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yingde and Shandong is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Yingde Greatchem Chemicals and Shandong Longquan Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Longquan and Yingde Greatchem 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 Yingde Greatchem Chemicals are associated (or correlated) with Shandong Longquan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Longquan has no effect on the direction of Yingde Greatchem i.e., Yingde Greatchem and Shandong Longquan go up and down completely randomly.
Pair Corralation between Yingde Greatchem and Shandong Longquan
Assuming the 90 days trading horizon Yingde Greatchem Chemicals is expected to under-perform the Shandong Longquan. In addition to that, Yingde Greatchem is 1.03 times more volatile than Shandong Longquan Pipeline. It trades about -0.01 of its total potential returns per unit of risk. Shandong Longquan Pipeline is currently generating about 0.01 per unit of volatility. If you would invest 536.00 in Shandong Longquan Pipeline on September 4, 2024 and sell it today you would lose (37.00) from holding Shandong Longquan Pipeline or give up 6.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yingde Greatchem Chemicals vs. Shandong Longquan Pipeline
Performance |
| Timeline |
| Yingde Greatchem Che |
| Shandong Longquan |
Yingde Greatchem and Shandong Longquan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yingde Greatchem and Shandong Longquan
The main advantage of trading using opposite Yingde Greatchem and Shandong Longquan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yingde Greatchem position performs unexpectedly, Shandong Longquan 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 Shandong Longquan will offset losses from the drop in Shandong Longquan's long position.| Yingde Greatchem vs. Zijin Mining Group | Yingde Greatchem vs. Wanhua Chemical Group | Yingde Greatchem vs. Baoshan Iron Steel | Yingde Greatchem vs. Rongsheng Petrochemical Co |
| Shandong Longquan vs. Quectel Wireless Solutions | Shandong Longquan vs. Fuda Alloy Materials | Shandong Longquan vs. Yingde Greatchem Chemicals | Shandong Longquan vs. Shandong Huifa Foodstuff |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |