Correlation Between Wanhua Chemical and Xinxiang Chemical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Wanhua Chemical Group and Xinxiang Chemical Fiber, you can compare the effects of market volatilities on Wanhua Chemical and Xinxiang 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 Wanhua Chemical with a short position of Xinxiang Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wanhua Chemical and Xinxiang Chemical.
Diversification Opportunities for Wanhua Chemical and Xinxiang Chemical
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wanhua and Xinxiang is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Wanhua Chemical Group and Xinxiang Chemical Fiber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinxiang Chemical Fiber and Wanhua Chemical 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 Wanhua Chemical Group are associated (or correlated) with Xinxiang Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinxiang Chemical Fiber has no effect on the direction of Wanhua Chemical i.e., Wanhua Chemical and Xinxiang Chemical go up and down completely randomly.
Pair Corralation between Wanhua Chemical and Xinxiang Chemical
Assuming the 90 days trading horizon Wanhua Chemical Group is expected to under-perform the Xinxiang Chemical. But the stock apears to be less risky and, when comparing its historical volatility, Wanhua Chemical Group is 1.56 times less risky than Xinxiang Chemical. The stock trades about -0.27 of its potential returns per unit of risk. The Xinxiang Chemical Fiber is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 413.00 in Xinxiang Chemical Fiber on October 29, 2024 and sell it today you would earn a total of 0.00 from holding Xinxiang Chemical Fiber or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wanhua Chemical Group vs. Xinxiang Chemical Fiber
Performance |
| Timeline |
| Wanhua Chemical Group |
| Xinxiang Chemical Fiber |
Wanhua Chemical and Xinxiang Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wanhua Chemical and Xinxiang Chemical
The main advantage of trading using opposite Wanhua Chemical and Xinxiang Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wanhua Chemical position performs unexpectedly, Xinxiang 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 Xinxiang Chemical will offset losses from the drop in Xinxiang Chemical's long position.| Wanhua Chemical vs. Anhui Fuhuang Steel | Wanhua Chemical vs. BrightGene Bio Medical | Wanhua Chemical vs. Hangzhou Guotai Environmental | Wanhua Chemical vs. Fujian Nanwang Environment |
| Xinxiang Chemical vs. Double Medical Technology | Xinxiang Chemical vs. Shandong Intco Medical | Xinxiang Chemical vs. Iat Automobile Technology | Xinxiang Chemical vs. Kontour Medical 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |