Correlation Between Hengli Petrochemical and Emdoor Information
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By analyzing existing cross correlation between Hengli Petrochemical Co and Emdoor Information Co, you can compare the effects of market volatilities on Hengli Petrochemical and Emdoor Information 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 Emdoor Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Petrochemical and Emdoor Information.
Diversification Opportunities for Hengli Petrochemical and Emdoor Information
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hengli and Emdoor is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Petrochemical Co and Emdoor Information Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emdoor Information 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 Emdoor Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emdoor Information has no effect on the direction of Hengli Petrochemical i.e., Hengli Petrochemical and Emdoor Information go up and down completely randomly.
Pair Corralation between Hengli Petrochemical and Emdoor Information
Assuming the 90 days trading horizon Hengli Petrochemical Co is expected to generate 0.15 times more return on investment than Emdoor Information. However, Hengli Petrochemical Co is 6.62 times less risky than Emdoor Information. It trades about -0.03 of its potential returns per unit of risk. Emdoor Information Co is currently generating about -0.04 per unit of risk. If you would invest 1,515 in Hengli Petrochemical Co on October 17, 2024 and sell it today you would lose (11.00) from holding Hengli Petrochemical Co or give up 0.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengli Petrochemical Co vs. Emdoor Information Co
Performance |
| Timeline |
| Hengli Petrochemical |
| Emdoor Information |
Hengli Petrochemical and Emdoor Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengli Petrochemical and Emdoor Information
The main advantage of trading using opposite Hengli Petrochemical and Emdoor Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Petrochemical position performs unexpectedly, Emdoor Information 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 Emdoor Information will offset losses from the drop in Emdoor Information's long position.| Hengli Petrochemical vs. China Publishing Media | Hengli Petrochemical vs. Thinkingdom Media Group | Hengli Petrochemical vs. Time Publishing and | Hengli Petrochemical vs. Changjiang Publishing Media |
| Emdoor Information vs. Jiangsu Financial Leasing | Emdoor Information vs. Jiugui Liquor Co | Emdoor Information vs. Sino Platinum Metals Co | Emdoor Information vs. Jinhui Liquor 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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