Correlation Between Shandong Publishing and Wuxi Chemical
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By analyzing existing cross correlation between Shandong Publishing Media and Wuxi Chemical Equipment, you can compare the effects of market volatilities on Shandong Publishing and Wuxi Chemical 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 Shandong Publishing with a short position of Wuxi Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Publishing and Wuxi Chemical.
Diversification Opportunities for Shandong Publishing and Wuxi Chemical
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shandong and Wuxi is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Publishing Media and Wuxi Chemical Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuxi Chemical Equipment and Shandong Publishing 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 Shandong Publishing Media are associated (or correlated) with Wuxi Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuxi Chemical Equipment has no effect on the direction of Shandong Publishing i.e., Shandong Publishing and Wuxi Chemical go up and down completely randomly.
Pair Corralation between Shandong Publishing and Wuxi Chemical
Assuming the 90 days trading horizon Shandong Publishing Media is expected to generate 1.18 times more return on investment than Wuxi Chemical. However, Shandong Publishing is 1.18 times more volatile than Wuxi Chemical Equipment. It trades about 0.2 of its potential returns per unit of risk. Wuxi Chemical Equipment is currently generating about 0.1 per unit of risk. If you would invest 1,063 in Shandong Publishing Media on September 13, 2024 and sell it today you would earn a total of 127.00 from holding Shandong Publishing Media or generate 11.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Publishing Media vs. Wuxi Chemical Equipment
Performance |
| Timeline |
| Shandong Publishing Media |
| Wuxi Chemical Equipment |
Shandong Publishing and Wuxi Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Publishing and Wuxi Chemical
The main advantage of trading using opposite Shandong Publishing and Wuxi Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Publishing position performs unexpectedly, Wuxi Chemical 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 Wuxi Chemical will offset losses from the drop in Wuxi Chemical's long position.| Shandong Publishing vs. Ming Yang Smart | Shandong Publishing vs. 159681 | Shandong Publishing vs. 159005 | Shandong Publishing vs. Loctek Ergonomic Technology |
| Wuxi Chemical vs. Zhongshan Public Utilities | Wuxi Chemical vs. Dongfeng Automobile Co | Wuxi Chemical vs. Zhongtong Guomai Communication | Wuxi Chemical vs. Wuhan Yangtze Communication |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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