Correlation Between Yunnan Jianzhijia and Shandong Polymer
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By analyzing existing cross correlation between Yunnan Jianzhijia Health Chain and Shandong Polymer Biochemicals, you can compare the effects of market volatilities on Yunnan Jianzhijia 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 Yunnan Jianzhijia with a short position of Shandong Polymer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Jianzhijia and Shandong Polymer.
Diversification Opportunities for Yunnan Jianzhijia and Shandong Polymer
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yunnan and Shandong is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Jianzhijia Health Chain 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 Yunnan Jianzhijia 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 Yunnan Jianzhijia Health Chain 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 Yunnan Jianzhijia i.e., Yunnan Jianzhijia and Shandong Polymer go up and down completely randomly.
Pair Corralation between Yunnan Jianzhijia and Shandong Polymer
Assuming the 90 days trading horizon Yunnan Jianzhijia Health Chain is expected to under-perform the Shandong Polymer. In addition to that, Yunnan Jianzhijia is 1.05 times more volatile than Shandong Polymer Biochemicals. It trades about -0.04 of its total potential returns per unit of risk. Shandong Polymer Biochemicals is currently generating about 0.0 per unit of volatility. If you would invest 557.00 in Shandong Polymer Biochemicals on September 4, 2024 and sell it today you would lose (78.00) from holding Shandong Polymer Biochemicals or give up 14.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunnan Jianzhijia Health Chain vs. Shandong Polymer Biochemicals
Performance |
| Timeline |
| Yunnan Jianzhijia |
| Shandong Polymer Bio |
Yunnan Jianzhijia and Shandong Polymer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Jianzhijia and Shandong Polymer
The main advantage of trading using opposite Yunnan Jianzhijia and Shandong Polymer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Jianzhijia 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.| Yunnan Jianzhijia vs. Cambricon Technologies Corp | Yunnan Jianzhijia vs. Loongson Technology Corp | Yunnan Jianzhijia vs. Shenzhen Fortune Trend | Yunnan Jianzhijia vs. Chongqing Road Bridge |
| Shandong Polymer vs. Zijin Mining Group | Shandong Polymer vs. Wanhua Chemical Group | Shandong Polymer vs. Baoshan Iron Steel | Shandong Polymer vs. Rongsheng Petrochemical Co |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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