Correlation Between Wanhua Chemical and Jiangxi Selon
Specify exactly 2 symbols:
By analyzing existing cross correlation between Wanhua Chemical Group and Jiangxi Selon Industrial, you can compare the effects of market volatilities on Wanhua Chemical and Jiangxi Selon 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 Jiangxi Selon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wanhua Chemical and Jiangxi Selon.
Diversification Opportunities for Wanhua Chemical and Jiangxi Selon
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wanhua and Jiangxi is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Wanhua Chemical Group and Jiangxi Selon Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Selon Industrial 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 Jiangxi Selon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Selon Industrial has no effect on the direction of Wanhua Chemical i.e., Wanhua Chemical and Jiangxi Selon go up and down completely randomly.
Pair Corralation between Wanhua Chemical and Jiangxi Selon
Assuming the 90 days trading horizon Wanhua Chemical Group is expected to under-perform the Jiangxi Selon. In addition to that, Wanhua Chemical is 1.04 times more volatile than Jiangxi Selon Industrial. It trades about -0.05 of its total potential returns per unit of risk. Jiangxi Selon Industrial is currently generating about 0.12 per unit of volatility. If you would invest 535.00 in Jiangxi Selon Industrial on September 5, 2024 and sell it today you would earn a total of 175.00 from holding Jiangxi Selon Industrial or generate 32.71% 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. Jiangxi Selon Industrial
Performance |
| Timeline |
| Wanhua Chemical Group |
| Jiangxi Selon Industrial |
Wanhua Chemical and Jiangxi Selon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wanhua Chemical and Jiangxi Selon
The main advantage of trading using opposite Wanhua Chemical and Jiangxi Selon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wanhua Chemical position performs unexpectedly, Jiangxi Selon 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 Jiangxi Selon will offset losses from the drop in Jiangxi Selon's long position.| Wanhua Chemical vs. Zijin Mining Group | Wanhua Chemical vs. Baoshan Iron Steel | Wanhua Chemical vs. Rongsheng Petrochemical Co | Wanhua Chemical vs. Shandong Gold Mining |
| Jiangxi Selon vs. Zijin Mining Group | Jiangxi Selon vs. Wanhua Chemical Group | Jiangxi Selon vs. Baoshan Iron Steel | Jiangxi Selon vs. Rongsheng Petrochemical Co |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |