Correlation Between Hengli Petrochemical and Jiangsu Yueda
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By analyzing existing cross correlation between Hengli Petrochemical Co and Jiangsu Yueda Investment, you can compare the effects of market volatilities on Hengli Petrochemical and Jiangsu Yueda 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 Jiangsu Yueda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Petrochemical and Jiangsu Yueda.
Diversification Opportunities for Hengli Petrochemical and Jiangsu Yueda
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hengli and Jiangsu is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Petrochemical Co and Jiangsu Yueda Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yueda Investment 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 Jiangsu Yueda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yueda Investment has no effect on the direction of Hengli Petrochemical i.e., Hengli Petrochemical and Jiangsu Yueda go up and down completely randomly.
Pair Corralation between Hengli Petrochemical and Jiangsu Yueda
Assuming the 90 days trading horizon Hengli Petrochemical is expected to generate 3.43 times less return on investment than Jiangsu Yueda. But when comparing it to its historical volatility, Hengli Petrochemical Co is 1.78 times less risky than Jiangsu Yueda. It trades about 0.02 of its potential returns per unit of risk. Jiangsu Yueda Investment is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 420.00 in Jiangsu Yueda Investment on October 24, 2024 and sell it today you would earn a total of 22.00 from holding Jiangsu Yueda Investment or generate 5.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengli Petrochemical Co vs. Jiangsu Yueda Investment
Performance |
| Timeline |
| Hengli Petrochemical |
| Jiangsu Yueda Investment |
Hengli Petrochemical and Jiangsu Yueda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengli Petrochemical and Jiangsu Yueda
The main advantage of trading using opposite Hengli Petrochemical and Jiangsu Yueda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Petrochemical position performs unexpectedly, Jiangsu Yueda 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 Jiangsu Yueda will offset losses from the drop in Jiangsu Yueda's long position.| Hengli Petrochemical vs. Jiangsu Yueda Investment | Hengli Petrochemical vs. Luyin Investment Group | Hengli Petrochemical vs. APT Medical | Hengli Petrochemical vs. Eyebright Medical Technology |
| Jiangsu Yueda vs. Sinofibers Technology Co | Jiangsu Yueda vs. Ye Chiu Metal | Jiangsu Yueda vs. Changchun UP Optotech | Jiangsu Yueda vs. Guangdong Jingyi Metal |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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