Correlation Between Hengli Petrochemical and National Silicon
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hengli Petrochemical Co and National Silicon Industry, you can compare the effects of market volatilities on Hengli Petrochemical and National Silicon 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 National Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Petrochemical and National Silicon.
Diversification Opportunities for Hengli Petrochemical and National Silicon
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hengli and National is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Petrochemical Co and National Silicon Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Silicon Industry 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 National Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Silicon Industry has no effect on the direction of Hengli Petrochemical i.e., Hengli Petrochemical and National Silicon go up and down completely randomly.
Pair Corralation between Hengli Petrochemical and National Silicon
Assuming the 90 days trading horizon Hengli Petrochemical is expected to generate 2.13 times less return on investment than National Silicon. But when comparing it to its historical volatility, Hengli Petrochemical Co is 2.24 times less risky than National Silicon. It trades about 0.12 of its potential returns per unit of risk. National Silicon Industry is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,329 in National Silicon Industry on October 18, 2024 and sell it today you would earn a total of 568.00 from holding National Silicon Industry or generate 42.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengli Petrochemical Co vs. National Silicon Industry
Performance |
| Timeline |
| Hengli Petrochemical |
| National Silicon Industry |
Hengli Petrochemical and National Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengli Petrochemical and National Silicon
The main advantage of trading using opposite Hengli Petrochemical and National Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Petrochemical position performs unexpectedly, National Silicon 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 National Silicon will offset losses from the drop in National Silicon'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 |
| National Silicon vs. Ningxia Younglight Chemicals | National Silicon vs. Cicc Fund Management | National Silicon vs. Hengli Petrochemical Co | National Silicon vs. AVIC Fund Management |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |