Correlation Between Xingguang Agricultural and Shenyang Chemical
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By analyzing existing cross correlation between Xingguang Agricultural Mach and Shenyang Chemical Industry, you can compare the effects of market volatilities on Xingguang Agricultural and Shenyang 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 Xingguang Agricultural with a short position of Shenyang Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xingguang Agricultural and Shenyang Chemical.
Diversification Opportunities for Xingguang Agricultural and Shenyang Chemical
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xingguang and Shenyang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Xingguang Agricultural Mach and Shenyang Chemical Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Chemical and Xingguang Agricultural 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 Xingguang Agricultural Mach are associated (or correlated) with Shenyang Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Chemical has no effect on the direction of Xingguang Agricultural i.e., Xingguang Agricultural and Shenyang Chemical go up and down completely randomly.
Pair Corralation between Xingguang Agricultural and Shenyang Chemical
Assuming the 90 days trading horizon Xingguang Agricultural Mach is expected to generate 1.31 times more return on investment than Shenyang Chemical. However, Xingguang Agricultural is 1.31 times more volatile than Shenyang Chemical Industry. It trades about 0.0 of its potential returns per unit of risk. Shenyang Chemical Industry is currently generating about -0.02 per unit of risk. If you would invest 899.00 in Xingguang Agricultural Mach on October 13, 2024 and sell it today you would lose (170.00) from holding Xingguang Agricultural Mach or give up 18.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xingguang Agricultural Mach vs. Shenyang Chemical Industry
Performance |
| Timeline |
| Xingguang Agricultural |
| Shenyang Chemical |
Xingguang Agricultural and Shenyang Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xingguang Agricultural and Shenyang Chemical
The main advantage of trading using opposite Xingguang Agricultural and Shenyang Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xingguang Agricultural position performs unexpectedly, Shenyang 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 Shenyang Chemical will offset losses from the drop in Shenyang Chemical's long position.| Xingguang Agricultural vs. Agricultural Bank of | Xingguang Agricultural vs. Industrial and Commercial | Xingguang Agricultural vs. Bank of China | Xingguang Agricultural vs. China Construction Bank |
| Shenyang Chemical vs. Xingguang Agricultural Mach | Shenyang Chemical vs. Masterwork Machinery | Shenyang Chemical vs. Longjian Road Bridge | Shenyang Chemical vs. Silkroad Visual Technology |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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