Correlation Between Chongqing Sulian and Longxing Chemical
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By analyzing existing cross correlation between Chongqing Sulian Plastic and Longxing Chemical Stock, you can compare the effects of market volatilities on Chongqing Sulian and Longxing Chemical 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 Longxing Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Sulian and Longxing Chemical.
Diversification Opportunities for Chongqing Sulian and Longxing Chemical
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Chongqing and Longxing is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Sulian Plastic and Longxing Chemical Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longxing Chemical Stock 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 Longxing Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longxing Chemical Stock has no effect on the direction of Chongqing Sulian i.e., Chongqing Sulian and Longxing Chemical go up and down completely randomly.
Pair Corralation between Chongqing Sulian and Longxing Chemical
Assuming the 90 days trading horizon Chongqing Sulian Plastic is expected to generate 2.14 times more return on investment than Longxing Chemical. However, Chongqing Sulian is 2.14 times more volatile than Longxing Chemical Stock. It trades about 0.2 of its potential returns per unit of risk. Longxing Chemical Stock is currently generating about 0.1 per unit of risk. If you would invest 2,411 in Chongqing Sulian Plastic on November 6, 2024 and sell it today you would earn a total of 471.00 from holding Chongqing Sulian Plastic or generate 19.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Sulian Plastic vs. Longxing Chemical Stock
Performance |
| Timeline |
| Chongqing Sulian Plastic |
| Longxing Chemical Stock |
Chongqing Sulian and Longxing Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Sulian and Longxing Chemical
The main advantage of trading using opposite Chongqing Sulian and Longxing Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Sulian position performs unexpectedly, Longxing Chemical 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 Longxing Chemical will offset losses from the drop in Longxing Chemical's long position.| Chongqing Sulian vs. Pengxin International Mining | Chongqing Sulian vs. GRG Banking Equipment | Chongqing Sulian vs. Financial Street Holdings | Chongqing Sulian vs. Ping An Insurance |
| Longxing Chemical vs. Ziel Home Furnishing | Longxing Chemical vs. Zoy Home Furnishing | Longxing Chemical vs. Panda Financial Holding | Longxing Chemical vs. Hangzhou Arcvideo 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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