Correlation Between Shenzhen SDG and Haima Automobile
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By analyzing existing cross correlation between Shenzhen SDG Information and Haima Automobile Group, you can compare the effects of market volatilities on Shenzhen SDG and Haima Automobile 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 SDG with a short position of Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen SDG and Haima Automobile.
Diversification Opportunities for Shenzhen SDG and Haima Automobile
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Haima is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen SDG Information and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile and Shenzhen SDG 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 SDG Information are associated (or correlated) with Haima Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haima Automobile has no effect on the direction of Shenzhen SDG i.e., Shenzhen SDG and Haima Automobile go up and down completely randomly.
Pair Corralation between Shenzhen SDG and Haima Automobile
Assuming the 90 days trading horizon Shenzhen SDG Information is expected to generate 0.69 times more return on investment than Haima Automobile. However, Shenzhen SDG Information is 1.45 times less risky than Haima Automobile. It trades about -0.29 of its potential returns per unit of risk. Haima Automobile Group is currently generating about -0.36 per unit of risk. If you would invest 598.00 in Shenzhen SDG Information on October 14, 2024 and sell it today you would lose (72.00) from holding Shenzhen SDG Information or give up 12.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen SDG Information vs. Haima Automobile Group
Performance |
| Timeline |
| Shenzhen SDG Information |
| Haima Automobile |
Shenzhen SDG and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen SDG and Haima Automobile
The main advantage of trading using opposite Shenzhen SDG and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen SDG position performs unexpectedly, Haima Automobile 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 Haima Automobile will offset losses from the drop in Haima Automobile's long position.| Shenzhen SDG vs. China Building Material | Shenzhen SDG vs. Jilin OLED Material | Shenzhen SDG vs. Lontium Semiconductor Corp | Shenzhen SDG vs. Ningxia Building Materials |
| Haima Automobile vs. Hangzhou Gisway Information | Haima Automobile vs. Heilongjiang Publishing Media | Haima Automobile vs. AVCON Information Tech | Haima Automobile vs. Shenzhen SDG Information |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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