Correlation Between Henan Lantian and Guangdong Skychem
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By analyzing existing cross correlation between Henan Lantian Gas and Guangdong Skychem Technology, you can compare the effects of market volatilities on Henan Lantian and Guangdong Skychem 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 Henan Lantian with a short position of Guangdong Skychem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Lantian and Guangdong Skychem.
Diversification Opportunities for Henan Lantian and Guangdong Skychem
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Henan and Guangdong is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Henan Lantian Gas and Guangdong Skychem Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Skychem and Henan Lantian 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 Henan Lantian Gas are associated (or correlated) with Guangdong Skychem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Skychem has no effect on the direction of Henan Lantian i.e., Henan Lantian and Guangdong Skychem go up and down completely randomly.
Pair Corralation between Henan Lantian and Guangdong Skychem
Assuming the 90 days trading horizon Henan Lantian Gas is expected to under-perform the Guangdong Skychem. But the stock apears to be less risky and, when comparing its historical volatility, Henan Lantian Gas is 4.36 times less risky than Guangdong Skychem. The stock trades about -0.38 of its potential returns per unit of risk. The Guangdong Skychem Technology is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 8,655 in Guangdong Skychem Technology on October 16, 2024 and sell it today you would lose (635.00) from holding Guangdong Skychem Technology or give up 7.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Henan Lantian Gas vs. Guangdong Skychem Technology
Performance |
| Timeline |
| Henan Lantian Gas |
| Guangdong Skychem |
Henan Lantian and Guangdong Skychem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Lantian and Guangdong Skychem
The main advantage of trading using opposite Henan Lantian and Guangdong Skychem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Lantian position performs unexpectedly, Guangdong Skychem 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 Guangdong Skychem will offset losses from the drop in Guangdong Skychem's long position.| Henan Lantian vs. Ming Yang Smart | Henan Lantian vs. 159681 | Henan Lantian vs. 159005 | Henan Lantian vs. Loctek Ergonomic Technology |
| Guangdong Skychem vs. Kunwu Jiuding Investment | Guangdong Skychem vs. Xiandai Investment Co | Guangdong Skychem vs. Hubei Geoway Investment | Guangdong Skychem vs. Henan Shuanghui Investment |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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