Correlation Between Yingde Greatchem and Chahua Modern
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By analyzing existing cross correlation between Yingde Greatchem Chemicals and Chahua Modern Housewares, you can compare the effects of market volatilities on Yingde Greatchem and Chahua Modern 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 Chahua Modern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yingde Greatchem and Chahua Modern.
Diversification Opportunities for Yingde Greatchem and Chahua Modern
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yingde and Chahua is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Yingde Greatchem Chemicals and Chahua Modern Housewares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chahua Modern Housewares 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 Chahua Modern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chahua Modern Housewares has no effect on the direction of Yingde Greatchem i.e., Yingde Greatchem and Chahua Modern go up and down completely randomly.
Pair Corralation between Yingde Greatchem and Chahua Modern
Assuming the 90 days trading horizon Yingde Greatchem Chemicals is expected to generate 0.53 times more return on investment than Chahua Modern. However, Yingde Greatchem Chemicals is 1.9 times less risky than Chahua Modern. It trades about 0.04 of its potential returns per unit of risk. Chahua Modern Housewares is currently generating about -0.05 per unit of risk. If you would invest 2,558 in Yingde Greatchem Chemicals on September 13, 2024 and sell it today you would earn a total of 39.00 from holding Yingde Greatchem Chemicals or generate 1.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yingde Greatchem Chemicals vs. Chahua Modern Housewares
Performance |
| Timeline |
| Yingde Greatchem Che |
| Chahua Modern Housewares |
Yingde Greatchem and Chahua Modern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yingde Greatchem and Chahua Modern
The main advantage of trading using opposite Yingde Greatchem and Chahua Modern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yingde Greatchem position performs unexpectedly, Chahua Modern 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 Chahua Modern will offset losses from the drop in Chahua Modern'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 |
| Chahua Modern vs. Agricultural Bank of | Chahua Modern vs. Industrial and Commercial | Chahua Modern vs. Bank of China | Chahua Modern vs. PetroChina Co Ltd |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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