Correlation Between Yingde Greatchem and China Marine
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By analyzing existing cross correlation between Yingde Greatchem Chemicals and China Marine Information, you can compare the effects of market volatilities on Yingde Greatchem and China Marine 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 China Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yingde Greatchem and China Marine.
Diversification Opportunities for Yingde Greatchem and China Marine
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Yingde and China is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Yingde Greatchem Chemicals and China Marine Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Marine Information 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 China Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Marine Information has no effect on the direction of Yingde Greatchem i.e., Yingde Greatchem and China Marine go up and down completely randomly.
Pair Corralation between Yingde Greatchem and China Marine
Assuming the 90 days trading horizon Yingde Greatchem Chemicals is expected to under-perform the China Marine. But the stock apears to be less risky and, when comparing its historical volatility, Yingde Greatchem Chemicals is 1.75 times less risky than China Marine. The stock trades about -0.26 of its potential returns per unit of risk. The China Marine Information is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 2,662 in China Marine Information on October 10, 2024 and sell it today you would lose (222.00) from holding China Marine Information or give up 8.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yingde Greatchem Chemicals vs. China Marine Information
Performance |
| Timeline |
| Yingde Greatchem Che |
| China Marine Information |
Yingde Greatchem and China Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yingde Greatchem and China Marine
The main advantage of trading using opposite Yingde Greatchem and China Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yingde Greatchem position performs unexpectedly, China Marine 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 China Marine will offset losses from the drop in China Marine's long position.| Yingde Greatchem vs. Chison Medical Technologies | Yingde Greatchem vs. Hengkang Medical Group | Yingde Greatchem vs. Beijing Sanyuan Foods | Yingde Greatchem vs. Xiwang Foodstuffs Co |
| China Marine vs. Zhongshan Public Utilities | China Marine vs. Chongqing Changan Automobile | China Marine vs. Digital China Information | China Marine vs. Guangzhou Ruoyuchen Information |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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