Correlation Between Hengli Petrochemical and Sportsoul
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By analyzing existing cross correlation between Hengli Petrochemical Co and Sportsoul Co Ltd, you can compare the effects of market volatilities on Hengli Petrochemical and Sportsoul 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 Hengli Petrochemical with a short position of Sportsoul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Petrochemical and Sportsoul.
Diversification Opportunities for Hengli Petrochemical and Sportsoul
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hengli and Sportsoul is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Petrochemical Co and Sportsoul Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sportsoul and Hengli Petrochemical 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 Hengli Petrochemical Co are associated (or correlated) with Sportsoul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sportsoul has no effect on the direction of Hengli Petrochemical i.e., Hengli Petrochemical and Sportsoul go up and down completely randomly.
Pair Corralation between Hengli Petrochemical and Sportsoul
Assuming the 90 days trading horizon Hengli Petrochemical Co is expected to under-perform the Sportsoul. But the stock apears to be less risky and, when comparing its historical volatility, Hengli Petrochemical Co is 2.11 times less risky than Sportsoul. The stock trades about -0.01 of its potential returns per unit of risk. The Sportsoul Co Ltd is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,530 in Sportsoul Co Ltd on October 16, 2024 and sell it today you would lose (449.00) from holding Sportsoul Co Ltd or give up 29.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengli Petrochemical Co vs. Sportsoul Co Ltd
Performance |
| Timeline |
| Hengli Petrochemical |
| Sportsoul |
Hengli Petrochemical and Sportsoul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengli Petrochemical and Sportsoul
The main advantage of trading using opposite Hengli Petrochemical and Sportsoul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Petrochemical position performs unexpectedly, Sportsoul 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 Sportsoul will offset losses from the drop in Sportsoul's long position.| Hengli Petrochemical vs. Zijin Mining Group | Hengli Petrochemical vs. Wanhua Chemical Group | Hengli Petrochemical vs. Baoshan Iron Steel | Hengli Petrochemical vs. Shandong Gold Mining |
| Sportsoul vs. Jinsanjiang Silicon Material | Sportsoul vs. Anji Foodstuff Co | Sportsoul vs. Dosilicon Co | Sportsoul vs. Hengli 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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