Correlation Between Niutech Environment and Shandong Polymer
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By analyzing existing cross correlation between Niutech Environment Technology and Shandong Polymer Biochemicals, you can compare the effects of market volatilities on Niutech Environment 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 Niutech Environment with a short position of Shandong Polymer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Niutech Environment and Shandong Polymer.
Diversification Opportunities for Niutech Environment and Shandong Polymer
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Niutech and Shandong is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Niutech Environment Technology 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 Niutech Environment 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 Niutech Environment Technology 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 Niutech Environment i.e., Niutech Environment and Shandong Polymer go up and down completely randomly.
Pair Corralation between Niutech Environment and Shandong Polymer
Assuming the 90 days trading horizon Niutech Environment is expected to generate 16.7 times less return on investment than Shandong Polymer. In addition to that, Niutech Environment is 1.14 times more volatile than Shandong Polymer Biochemicals. It trades about 0.0 of its total potential returns per unit of risk. Shandong Polymer Biochemicals is currently generating about 0.04 per unit of volatility. If you would invest 413.00 in Shandong Polymer Biochemicals on September 3, 2024 and sell it today you would earn a total of 51.00 from holding Shandong Polymer Biochemicals or generate 12.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Niutech Environment Technology vs. Shandong Polymer Biochemicals
Performance |
| Timeline |
| Niutech Environment |
| Shandong Polymer Bio |
Niutech Environment and Shandong Polymer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Niutech Environment and Shandong Polymer
The main advantage of trading using opposite Niutech Environment and Shandong Polymer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Niutech Environment 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.| Niutech Environment vs. Cultural Investment Holdings | Niutech Environment vs. Gome Telecom Equipment | Niutech Environment vs. Bus Online Co | Niutech Environment vs. Holitech Technology Co |
| 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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