Correlation Between Lianhe Chemical and Shenzhen Noposion
Specify exactly 2 symbols:
By analyzing existing cross correlation between Lianhe Chemical Technology and Shenzhen Noposion Agrochemicals, you can compare the effects of market volatilities on Lianhe Chemical and Shenzhen Noposion 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 Lianhe Chemical with a short position of Shenzhen Noposion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lianhe Chemical and Shenzhen Noposion.
Diversification Opportunities for Lianhe Chemical and Shenzhen Noposion
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lianhe and Shenzhen is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Lianhe Chemical Technology and Shenzhen Noposion Agrochemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Noposion and Lianhe Chemical 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 Lianhe Chemical Technology are associated (or correlated) with Shenzhen Noposion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Noposion has no effect on the direction of Lianhe Chemical i.e., Lianhe Chemical and Shenzhen Noposion go up and down completely randomly.
Pair Corralation between Lianhe Chemical and Shenzhen Noposion
Assuming the 90 days trading horizon Lianhe Chemical is expected to generate 2.22 times less return on investment than Shenzhen Noposion. But when comparing it to its historical volatility, Lianhe Chemical Technology is 1.04 times less risky than Shenzhen Noposion. It trades about 0.11 of its potential returns per unit of risk. Shenzhen Noposion Agrochemicals is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 797.00 in Shenzhen Noposion Agrochemicals on September 24, 2024 and sell it today you would earn a total of 374.00 from holding Shenzhen Noposion Agrochemicals or generate 46.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Lianhe Chemical Technology vs. Shenzhen Noposion Agrochemical
Performance |
Timeline |
Lianhe Chemical Tech |
Shenzhen Noposion |
Lianhe Chemical and Shenzhen Noposion Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lianhe Chemical and Shenzhen Noposion
The main advantage of trading using opposite Lianhe Chemical and Shenzhen Noposion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lianhe Chemical position performs unexpectedly, Shenzhen Noposion 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 Shenzhen Noposion will offset losses from the drop in Shenzhen Noposion's long position.Lianhe Chemical vs. Zijin Mining Group | Lianhe Chemical vs. Wanhua Chemical Group | Lianhe Chemical vs. Baoshan Iron Steel | Lianhe Chemical vs. Shandong Gold Mining |
Shenzhen Noposion vs. Zijin Mining Group | Shenzhen Noposion vs. Wanhua Chemical Group | Shenzhen Noposion vs. Baoshan Iron Steel | Shenzhen Noposion vs. Shandong Gold Mining |
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.
Other Complementary Tools
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
CEOs Directory Screen CEOs from public companies around the world | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing |