Correlation Between Chongqing Sulian and Shenyang Huitian
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By analyzing existing cross correlation between Chongqing Sulian Plastic and Shenyang Huitian Thermal, you can compare the effects of market volatilities on Chongqing Sulian and Shenyang Huitian 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 Chongqing Sulian with a short position of Shenyang Huitian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Sulian and Shenyang Huitian.
Diversification Opportunities for Chongqing Sulian and Shenyang Huitian
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chongqing and Shenyang is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Sulian Plastic and Shenyang Huitian Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Huitian Thermal and Chongqing Sulian 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 Chongqing Sulian Plastic are associated (or correlated) with Shenyang Huitian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Huitian Thermal has no effect on the direction of Chongqing Sulian i.e., Chongqing Sulian and Shenyang Huitian go up and down completely randomly.
Pair Corralation between Chongqing Sulian and Shenyang Huitian
Assuming the 90 days trading horizon Chongqing Sulian Plastic is expected to generate 2.92 times more return on investment than Shenyang Huitian. However, Chongqing Sulian is 2.92 times more volatile than Shenyang Huitian Thermal. It trades about 0.12 of its potential returns per unit of risk. Shenyang Huitian Thermal is currently generating about -0.05 per unit of risk. If you would invest 2,591 in Chongqing Sulian Plastic on October 30, 2024 and sell it today you would earn a total of 291.00 from holding Chongqing Sulian Plastic or generate 11.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Sulian Plastic vs. Shenyang Huitian Thermal
Performance |
| Timeline |
| Chongqing Sulian Plastic |
| Shenyang Huitian Thermal |
Chongqing Sulian and Shenyang Huitian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Sulian and Shenyang Huitian
The main advantage of trading using opposite Chongqing Sulian and Shenyang Huitian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Sulian position performs unexpectedly, Shenyang Huitian 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 Shenyang Huitian will offset losses from the drop in Shenyang Huitian's long position.| Chongqing Sulian vs. Kweichow Moutai Co | Chongqing Sulian vs. Jiangsu Pacific Quartz | Chongqing Sulian vs. Shenzhen Transsion Holdings | Chongqing Sulian vs. Beijing Roborock Technology |
| Shenyang Huitian vs. Tsingtao Brewery Co | Shenyang Huitian vs. Hainan Airlines Co | Shenyang Huitian vs. Panda Financial Holding | Shenyang Huitian vs. Guangzhou Zhujiang Brewery |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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