Correlation Between Shandong Polymer and Jiangsu Yanghe
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By analyzing existing cross correlation between Shandong Polymer Biochemicals and Jiangsu Yanghe Brewery, you can compare the effects of market volatilities on Shandong Polymer and Jiangsu Yanghe 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 Shandong Polymer with a short position of Jiangsu Yanghe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Polymer and Jiangsu Yanghe.
Diversification Opportunities for Shandong Polymer and Jiangsu Yanghe
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shandong and Jiangsu is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Polymer Biochemicals and Jiangsu Yanghe Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yanghe Brewery and Shandong Polymer 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 Shandong Polymer Biochemicals are associated (or correlated) with Jiangsu Yanghe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yanghe Brewery has no effect on the direction of Shandong Polymer i.e., Shandong Polymer and Jiangsu Yanghe go up and down completely randomly.
Pair Corralation between Shandong Polymer and Jiangsu Yanghe
Assuming the 90 days trading horizon Shandong Polymer Biochemicals is expected to generate 1.12 times more return on investment than Jiangsu Yanghe. However, Shandong Polymer is 1.12 times more volatile than Jiangsu Yanghe Brewery. It trades about 0.14 of its potential returns per unit of risk. Jiangsu Yanghe Brewery is currently generating about 0.09 per unit of risk. If you would invest 354.00 in Shandong Polymer Biochemicals on September 23, 2024 and sell it today you would earn a total of 102.00 from holding Shandong Polymer Biochemicals or generate 28.81% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Shandong Polymer Biochemicals vs. Jiangsu Yanghe Brewery
Performance |
Timeline |
Shandong Polymer Bio |
Jiangsu Yanghe Brewery |
Shandong Polymer and Jiangsu Yanghe Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shandong Polymer and Jiangsu Yanghe
The main advantage of trading using opposite Shandong Polymer and Jiangsu Yanghe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Polymer position performs unexpectedly, Jiangsu Yanghe 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 Jiangsu Yanghe will offset losses from the drop in Jiangsu Yanghe's long position.Shandong Polymer vs. Zijin Mining Group | Shandong Polymer vs. Wanhua Chemical Group | Shandong Polymer vs. Baoshan Iron Steel | Shandong Polymer vs. Shandong Gold Mining |
Jiangsu Yanghe vs. Shandong Polymer Biochemicals | Jiangsu Yanghe vs. Xiangpiaopiao Food Co | Jiangsu Yanghe vs. Hubei Xingfa Chemicals | Jiangsu Yanghe vs. Yingde Greatchem Chemicals |
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 CEOs Directory module to screen CEOs from public companies around the world.
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