Correlation Between Shenzhen Centralcon and Huaneng Lancang
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and Huaneng Lancang River, you can compare the effects of market volatilities on Shenzhen Centralcon and Huaneng Lancang 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 Huaneng Lancang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Huaneng Lancang.
Diversification Opportunities for Shenzhen Centralcon and Huaneng Lancang
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shenzhen and Huaneng is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and Huaneng Lancang River in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaneng Lancang River 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 Huaneng Lancang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaneng Lancang River has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and Huaneng Lancang go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Huaneng Lancang
Assuming the 90 days trading horizon Shenzhen Centralcon Investment is expected to generate 1.86 times more return on investment than Huaneng Lancang. However, Shenzhen Centralcon is 1.86 times more volatile than Huaneng Lancang River. It trades about 0.26 of its potential returns per unit of risk. Huaneng Lancang River is currently generating about 0.02 per unit of risk. If you would invest 490.00 in Shenzhen Centralcon Investment on September 18, 2024 and sell it today you would earn a total of 66.00 from holding Shenzhen Centralcon Investment or generate 13.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Shenzhen Centralcon Investment vs. Huaneng Lancang River
Performance |
| Timeline |
| Shenzhen Centralcon |
| Huaneng Lancang River |
Shenzhen Centralcon and Huaneng Lancang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Centralcon and Huaneng Lancang
The main advantage of trading using opposite Shenzhen Centralcon and Huaneng Lancang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, Huaneng Lancang 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 Huaneng Lancang will offset losses from the drop in Huaneng Lancang's long position.| Shenzhen Centralcon vs. China Life Insurance | Shenzhen Centralcon vs. Cinda Securities Co | Shenzhen Centralcon vs. Piotech Inc A | Shenzhen Centralcon vs. Dongxing Sec Co |
| Huaneng Lancang vs. Cultural Investment Holdings | Huaneng Lancang vs. Haima Automobile Group | Huaneng Lancang vs. Shenzhen Centralcon Investment | Huaneng Lancang vs. Sunwave Communications 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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