Correlation Between Yingde Greatchem and Kangxin New
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By analyzing existing cross correlation between Yingde Greatchem Chemicals and Kangxin New Materials, you can compare the effects of market volatilities on Yingde Greatchem and Kangxin New 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 Kangxin New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yingde Greatchem and Kangxin New.
Diversification Opportunities for Yingde Greatchem and Kangxin New
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yingde and Kangxin is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Yingde Greatchem Chemicals and Kangxin New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangxin New Materials 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 Kangxin New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangxin New Materials has no effect on the direction of Yingde Greatchem i.e., Yingde Greatchem and Kangxin New go up and down completely randomly.
Pair Corralation between Yingde Greatchem and Kangxin New
Assuming the 90 days trading horizon Yingde Greatchem Chemicals is expected to generate 0.61 times more return on investment than Kangxin New. However, Yingde Greatchem Chemicals is 1.63 times less risky than Kangxin New. It trades about -0.1 of its potential returns per unit of risk. Kangxin New Materials is currently generating about -0.13 per unit of risk. If you would invest 2,545 in Yingde Greatchem Chemicals on October 30, 2024 and sell it today you would lose (220.00) from holding Yingde Greatchem Chemicals or give up 8.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yingde Greatchem Chemicals vs. Kangxin New Materials
Performance |
| Timeline |
| Yingde Greatchem Che |
| Kangxin New Materials |
Yingde Greatchem and Kangxin New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yingde Greatchem and Kangxin New
The main advantage of trading using opposite Yingde Greatchem and Kangxin New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yingde Greatchem position performs unexpectedly, Kangxin New 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 Kangxin New will offset losses from the drop in Kangxin New's long position.| Yingde Greatchem vs. Zijin Mining Group | Yingde Greatchem vs. Wanhua Chemical Group | Yingde Greatchem vs. Baoshan Iron Steel | Yingde Greatchem vs. Shandong Gold Mining |
| Kangxin New vs. Dazhong Transportation Group | Kangxin New vs. Nanning Chemical Industry | Kangxin New vs. Guangzhou Jointas Chemical | Kangxin New vs. Lander Sports Development |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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