Correlation Between Shenzhen Centralcon and Hunan Airbluer
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and Hunan Airbluer Environmental, you can compare the effects of market volatilities on Shenzhen Centralcon and Hunan Airbluer 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 Shenzhen Centralcon with a short position of Hunan Airbluer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Hunan Airbluer.
Diversification Opportunities for Shenzhen Centralcon and Hunan Airbluer
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Hunan is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and Hunan Airbluer Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Airbluer Envir and Shenzhen Centralcon 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 Shenzhen Centralcon Investment are associated (or correlated) with Hunan Airbluer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Airbluer Envir has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and Hunan Airbluer go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Hunan Airbluer
Assuming the 90 days trading horizon Shenzhen Centralcon Investment is expected to under-perform the Hunan Airbluer. In addition to that, Shenzhen Centralcon is 1.11 times more volatile than Hunan Airbluer Environmental. It trades about -0.09 of its total potential returns per unit of risk. Hunan Airbluer Environmental is currently generating about -0.02 per unit of volatility. If you would invest 4,997 in Hunan Airbluer Environmental on September 27, 2024 and sell it today you would lose (134.00) from holding Hunan Airbluer Environmental or give up 2.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Shenzhen Centralcon Investment vs. Hunan Airbluer Environmental
Performance |
| Timeline |
| Shenzhen Centralcon |
| Hunan Airbluer Envir |
Shenzhen Centralcon and Hunan Airbluer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Centralcon and Hunan Airbluer
The main advantage of trading using opposite Shenzhen Centralcon and Hunan Airbluer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, Hunan Airbluer 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 Hunan Airbluer will offset losses from the drop in Hunan Airbluer's long position.| Shenzhen Centralcon vs. PetroChina Co Ltd | Shenzhen Centralcon vs. China Mobile Limited | Shenzhen Centralcon vs. CNOOC Limited | Shenzhen Centralcon vs. Ping An Insurance |
| Hunan Airbluer vs. Uxi Unicomp Technology | Hunan Airbluer vs. Shenzhen Centralcon Investment | Hunan Airbluer vs. Beijing Mainstreets Investment | Hunan Airbluer vs. Quectel Wireless Solutions |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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