Correlation Between Yingde Greatchem and Changjiang Jinggong
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By analyzing existing cross correlation between Yingde Greatchem Chemicals and Changjiang Jinggong Steel, you can compare the effects of market volatilities on Yingde Greatchem and Changjiang Jinggong 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 Changjiang Jinggong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yingde Greatchem and Changjiang Jinggong.
Diversification Opportunities for Yingde Greatchem and Changjiang Jinggong
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yingde and Changjiang is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Yingde Greatchem Chemicals and Changjiang Jinggong Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Jinggong Steel 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 Changjiang Jinggong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Jinggong Steel has no effect on the direction of Yingde Greatchem i.e., Yingde Greatchem and Changjiang Jinggong go up and down completely randomly.
Pair Corralation between Yingde Greatchem and Changjiang Jinggong
Assuming the 90 days trading horizon Yingde Greatchem Chemicals is expected to under-perform the Changjiang Jinggong. In addition to that, Yingde Greatchem is 1.36 times more volatile than Changjiang Jinggong Steel. It trades about -0.03 of its total potential returns per unit of risk. Changjiang Jinggong Steel is currently generating about 0.06 per unit of volatility. If you would invest 295.00 in Changjiang Jinggong Steel on August 29, 2024 and sell it today you would earn a total of 6.00 from holding Changjiang Jinggong Steel or generate 2.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yingde Greatchem Chemicals vs. Changjiang Jinggong Steel
Performance |
| Timeline |
| Yingde Greatchem Che |
| Changjiang Jinggong Steel |
Yingde Greatchem and Changjiang Jinggong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yingde Greatchem and Changjiang Jinggong
The main advantage of trading using opposite Yingde Greatchem and Changjiang Jinggong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yingde Greatchem position performs unexpectedly, Changjiang Jinggong 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 Changjiang Jinggong will offset losses from the drop in Changjiang Jinggong's long position.| Yingde Greatchem vs. Xingguang Agricultural Mach | Yingde Greatchem vs. Anhui Deli Household | Yingde Greatchem vs. Long Yuan Construction | Yingde Greatchem vs. Lutian Machinery Co |
| Changjiang Jinggong vs. Ming Yang Smart | Changjiang Jinggong vs. 159681 | Changjiang Jinggong vs. 159005 | Changjiang Jinggong vs. Loctek Ergonomic Technology |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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