Correlation Between Shenzhen Bioeasy and Sinochem International
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By analyzing existing cross correlation between Shenzhen Bioeasy Biotechnology and Sinochem International Corp, you can compare the effects of market volatilities on Shenzhen Bioeasy and Sinochem International 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 Shenzhen Bioeasy with a short position of Sinochem International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Bioeasy and Sinochem International.
Diversification Opportunities for Shenzhen Bioeasy and Sinochem International
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Sinochem is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Bioeasy Biotechnology and Sinochem International Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinochem International and Shenzhen Bioeasy 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 Shenzhen Bioeasy Biotechnology are associated (or correlated) with Sinochem International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinochem International has no effect on the direction of Shenzhen Bioeasy i.e., Shenzhen Bioeasy and Sinochem International go up and down completely randomly.
Pair Corralation between Shenzhen Bioeasy and Sinochem International
Assuming the 90 days trading horizon Shenzhen Bioeasy Biotechnology is expected to generate 1.97 times more return on investment than Sinochem International. However, Shenzhen Bioeasy is 1.97 times more volatile than Sinochem International Corp. It trades about 0.0 of its potential returns per unit of risk. Sinochem International Corp is currently generating about 0.0 per unit of risk. If you would invest 1,218 in Shenzhen Bioeasy Biotechnology on September 5, 2024 and sell it today you would lose (226.00) from holding Shenzhen Bioeasy Biotechnology or give up 18.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Bioeasy Biotechnology vs. Sinochem International Corp
Performance |
| Timeline |
| Shenzhen Bioeasy Bio |
| Sinochem International |
Shenzhen Bioeasy and Sinochem International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Bioeasy and Sinochem International
The main advantage of trading using opposite Shenzhen Bioeasy and Sinochem International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Bioeasy position performs unexpectedly, Sinochem International 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 Sinochem International will offset losses from the drop in Sinochem International's long position.| Shenzhen Bioeasy vs. Kweichow Moutai Co | Shenzhen Bioeasy vs. Shenzhen Mindray Bio Medical | Shenzhen Bioeasy vs. Jiangsu Pacific Quartz | Shenzhen Bioeasy vs. G bits Network Technology |
| Sinochem International vs. Agricultural Bank of | Sinochem International vs. Industrial and Commercial | Sinochem International vs. Bank of China | Sinochem International vs. China Construction Bank |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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