Correlation Between Threes Company and Shandong Polymer
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By analyzing existing cross correlation between Threes Company Media and Shandong Polymer Biochemicals, you can compare the effects of market volatilities on Threes Company 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 Threes Company with a short position of Shandong Polymer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Threes Company and Shandong Polymer.
Diversification Opportunities for Threes Company and Shandong Polymer
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Threes and Shandong is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Threes Company Media 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 Threes Company 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 Threes Company Media 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 Threes Company i.e., Threes Company and Shandong Polymer go up and down completely randomly.
Pair Corralation between Threes Company and Shandong Polymer
Assuming the 90 days trading horizon Threes Company Media is expected to generate 1.09 times more return on investment than Shandong Polymer. However, Threes Company is 1.09 times more volatile than Shandong Polymer Biochemicals. It trades about 0.12 of its potential returns per unit of risk. Shandong Polymer Biochemicals is currently generating about 0.07 per unit of risk. If you would invest 3,190 in Threes Company Media on September 3, 2024 and sell it today you would earn a total of 304.00 from holding Threes Company Media or generate 9.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Threes Company Media vs. Shandong Polymer Biochemicals
Performance |
| Timeline |
| Threes Company |
| Shandong Polymer Bio |
Threes Company and Shandong Polymer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Threes Company and Shandong Polymer
The main advantage of trading using opposite Threes Company and Shandong Polymer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Threes Company 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.| Threes Company vs. Gansu Jiu Steel | Threes Company vs. Ming Yang Smart | Threes Company vs. Aba Chemicals Corp | Threes Company vs. Loctek Ergonomic Technology |
| Shandong Polymer vs. Zijin Mining Group | Shandong Polymer vs. Baoshan Iron Steel | Shandong Polymer vs. Rongsheng Petrochemical Co | Shandong Polymer vs. Hoshine Silicon Ind |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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