Correlation Between North Huajin and Shenzhen Genvict
Specify exactly 2 symbols:
By analyzing existing cross correlation between North Huajin Chemical and Shenzhen Genvict Technologies, you can compare the effects of market volatilities on North Huajin and Shenzhen Genvict 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 North Huajin with a short position of Shenzhen Genvict. Check out your portfolio center. Please also check ongoing floating volatility patterns of North Huajin and Shenzhen Genvict.
Diversification Opportunities for North Huajin and Shenzhen Genvict
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between North and Shenzhen is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding North Huajin Chemical and Shenzhen Genvict Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Genvict Tec and North Huajin 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 North Huajin Chemical are associated (or correlated) with Shenzhen Genvict. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Genvict Tec has no effect on the direction of North Huajin i.e., North Huajin and Shenzhen Genvict go up and down completely randomly.
Pair Corralation between North Huajin and Shenzhen Genvict
Assuming the 90 days trading horizon North Huajin Chemical is expected to under-perform the Shenzhen Genvict. But the stock apears to be less risky and, when comparing its historical volatility, North Huajin Chemical is 1.59 times less risky than Shenzhen Genvict. The stock trades about -0.01 of its potential returns per unit of risk. The Shenzhen Genvict Technologies is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,010 in Shenzhen Genvict Technologies on September 12, 2024 and sell it today you would earn a total of 1,108 from holding Shenzhen Genvict Technologies or generate 55.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
North Huajin Chemical vs. Shenzhen Genvict Technologies
Performance |
| Timeline |
| North Huajin Chemical |
| Shenzhen Genvict Tec |
North Huajin and Shenzhen Genvict Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with North Huajin and Shenzhen Genvict
The main advantage of trading using opposite North Huajin and Shenzhen Genvict positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North Huajin position performs unexpectedly, Shenzhen Genvict 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 Shenzhen Genvict will offset losses from the drop in Shenzhen Genvict's long position.| North Huajin vs. Zijin Mining Group | North Huajin vs. Wanhua Chemical Group | North Huajin vs. Baoshan Iron Steel | North Huajin vs. Rongsheng Petrochemical Co |
| Shenzhen Genvict vs. North Huajin Chemical | Shenzhen Genvict vs. Xinya Electronic Co | Shenzhen Genvict vs. Lootom Telcovideo Network | Shenzhen Genvict vs. Liaoning Dingjide Petrochemical |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |