Correlation Between Shenyang Chemical and Gan Yuan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenyang Chemical Industry and Gan Yuan Foods, you can compare the effects of market volatilities on Shenyang Chemical and Gan Yuan 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 Shenyang Chemical with a short position of Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Chemical and Gan Yuan.
Diversification Opportunities for Shenyang Chemical and Gan Yuan
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenyang and Gan is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Chemical Industry and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan Foods and Shenyang 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 Shenyang Chemical Industry are associated (or correlated) with Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of Shenyang Chemical i.e., Shenyang Chemical and Gan Yuan go up and down completely randomly.
Pair Corralation between Shenyang Chemical and Gan Yuan
Assuming the 90 days trading horizon Shenyang Chemical is expected to generate 4.58 times less return on investment than Gan Yuan. In addition to that, Shenyang Chemical is 1.36 times more volatile than Gan Yuan Foods. It trades about 0.03 of its total potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.18 per unit of volatility. If you would invest 7,067 in Gan Yuan Foods on October 24, 2024 and sell it today you would earn a total of 2,065 from holding Gan Yuan Foods or generate 29.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Shenyang Chemical Industry vs. Gan Yuan Foods
Performance |
Timeline |
Shenyang Chemical |
Gan Yuan Foods |
Shenyang Chemical and Gan Yuan Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenyang Chemical and Gan Yuan
The main advantage of trading using opposite Shenyang Chemical and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Chemical position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan's long position.Shenyang Chemical vs. Rising Nonferrous Metals | Shenyang Chemical vs. Suzhou Xingye Material | Shenyang Chemical vs. Guangdong Jingyi Metal | Shenyang Chemical vs. Tongling Nonferrous Metals |
Gan Yuan vs. Tonghua Grape Wine | Gan Yuan vs. Inspur Software Co | Gan Yuan vs. Citic Guoan Wine | Gan Yuan vs. Dhc Software Co |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Transaction History View history of all your transactions and understand their impact on performance | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |