Correlation Between Shenyang Chemical and Hua Xia
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By analyzing existing cross correlation between Shenyang Chemical Industry and Hua Xia Bank, you can compare the effects of market volatilities on Shenyang Chemical and Hua Xia 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 Hua Xia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Chemical and Hua Xia.
Diversification Opportunities for Shenyang Chemical and Hua Xia
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shenyang and Hua is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Chemical Industry and Hua Xia Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hua Xia Bank 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 Hua Xia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hua Xia Bank has no effect on the direction of Shenyang Chemical i.e., Shenyang Chemical and Hua Xia go up and down completely randomly.
Pair Corralation between Shenyang Chemical and Hua Xia
Assuming the 90 days trading horizon Shenyang Chemical Industry is expected to under-perform the Hua Xia. In addition to that, Shenyang Chemical is 2.31 times more volatile than Hua Xia Bank. It trades about -0.07 of its total potential returns per unit of risk. Hua Xia Bank is currently generating about 0.0 per unit of volatility. If you would invest 725.00 in Hua Xia Bank on November 26, 2024 and sell it today you would lose (1.00) from holding Hua Xia Bank or give up 0.14% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Shenyang Chemical Industry vs. Hua Xia Bank
Performance |
Timeline |
Shenyang Chemical |
Hua Xia Bank |
Shenyang Chemical and Hua Xia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenyang Chemical and Hua Xia
The main advantage of trading using opposite Shenyang Chemical and Hua Xia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Chemical position performs unexpectedly, Hua Xia 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 Hua Xia will offset losses from the drop in Hua Xia's long position.Shenyang Chemical vs. Cultural Investment Holdings | ||
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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