Correlation Between Hefei Metalforming and Shandong Polymer
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By analyzing existing cross correlation between Hefei Metalforming Mach and Shandong Polymer Biochemicals, you can compare the effects of market volatilities on Hefei Metalforming and Shandong Polymer 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 Hefei Metalforming with a short position of Shandong Polymer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hefei Metalforming and Shandong Polymer.
Diversification Opportunities for Hefei Metalforming and Shandong Polymer
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hefei and Shandong is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Hefei Metalforming Mach and Shandong Polymer Biochemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Polymer Bio and Hefei Metalforming 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 Hefei Metalforming Mach are associated (or correlated) with Shandong Polymer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Polymer Bio has no effect on the direction of Hefei Metalforming i.e., Hefei Metalforming and Shandong Polymer go up and down completely randomly.
Pair Corralation between Hefei Metalforming and Shandong Polymer
Assuming the 90 days trading horizon Hefei Metalforming Mach is expected to generate 1.15 times more return on investment than Shandong Polymer. However, Hefei Metalforming is 1.15 times more volatile than Shandong Polymer Biochemicals. It trades about 0.0 of its potential returns per unit of risk. Shandong Polymer Biochemicals is currently generating about -0.01 per unit of risk. If you would invest 894.00 in Hefei Metalforming Mach on October 13, 2024 and sell it today you would lose (228.00) from holding Hefei Metalforming Mach or give up 25.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hefei Metalforming Mach vs. Shandong Polymer Biochemicals
Performance |
| Timeline |
| Hefei Metalforming Mach |
| Shandong Polymer Bio |
Hefei Metalforming and Shandong Polymer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hefei Metalforming and Shandong Polymer
The main advantage of trading using opposite Hefei Metalforming and Shandong Polymer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hefei Metalforming position performs unexpectedly, Shandong Polymer 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 Shandong Polymer will offset losses from the drop in Shandong Polymer's long position.| Hefei Metalforming vs. Dezhan HealthCare Co | Hefei Metalforming vs. Shandong Sinoglory Health | Hefei Metalforming vs. Eastroc Beverage Group | Hefei Metalforming vs. Shanghai Rongtai Health |
| Shandong Polymer vs. Industrial Bank Co | Shandong Polymer vs. Postal Savings Bank | Shandong Polymer vs. Hefei Metalforming Mach | Shandong Polymer vs. Tongling Nonferrous Metals |
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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