Correlation Between Cabio Biotech and Shenyang Chemical
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By analyzing existing cross correlation between Cabio Biotech Wuhan and Shenyang Chemical Industry, you can compare the effects of market volatilities on Cabio Biotech 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 Cabio Biotech with a short position of Shenyang Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cabio Biotech and Shenyang Chemical.
Diversification Opportunities for Cabio Biotech and Shenyang Chemical
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cabio and Shenyang is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Cabio Biotech Wuhan and Shenyang Chemical Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Chemical and Cabio Biotech 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 Cabio Biotech Wuhan 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 Cabio Biotech i.e., Cabio Biotech and Shenyang Chemical go up and down completely randomly.
Pair Corralation between Cabio Biotech and Shenyang Chemical
Assuming the 90 days trading horizon Cabio Biotech Wuhan is expected to under-perform the Shenyang Chemical. In addition to that, Cabio Biotech is 1.26 times more volatile than Shenyang Chemical Industry. It trades about -0.03 of its total potential returns per unit of risk. Shenyang Chemical Industry is currently generating about -0.02 per unit of volatility. If you would invest 505.00 in Shenyang Chemical Industry on October 16, 2024 and sell it today you would lose (188.00) from holding Shenyang Chemical Industry or give up 37.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cabio Biotech Wuhan vs. Shenyang Chemical Industry
Performance |
| Timeline |
| Cabio Biotech Wuhan |
| Shenyang Chemical |
Cabio Biotech and Shenyang Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cabio Biotech and Shenyang Chemical
The main advantage of trading using opposite Cabio Biotech and Shenyang Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cabio Biotech 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.| Cabio Biotech vs. Ming Yang Smart | Cabio Biotech vs. 159681 | Cabio Biotech vs. 159005 | Cabio Biotech vs. Loctek Ergonomic Technology |
| Shenyang Chemical vs. Luyin Investment Group | Shenyang Chemical vs. Chengdu Xingrong Investment | Shenyang Chemical vs. Nuode Investment Co | Shenyang Chemical vs. Western Metal Materials |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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