Correlation Between Shenzhen SDG and Hithink RoyalFlush
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By analyzing existing cross correlation between Shenzhen SDG Information and Hithink RoyalFlush Info, you can compare the effects of market volatilities on Shenzhen SDG and Hithink RoyalFlush 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 Hithink RoyalFlush. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen SDG and Hithink RoyalFlush.
Diversification Opportunities for Shenzhen SDG and Hithink RoyalFlush
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Hithink is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen SDG Information and Hithink RoyalFlush Info in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hithink RoyalFlush Info 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 Hithink RoyalFlush. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hithink RoyalFlush Info has no effect on the direction of Shenzhen SDG i.e., Shenzhen SDG and Hithink RoyalFlush go up and down completely randomly.
Pair Corralation between Shenzhen SDG and Hithink RoyalFlush
Assuming the 90 days trading horizon Shenzhen SDG is expected to generate 6.82 times less return on investment than Hithink RoyalFlush. But when comparing it to its historical volatility, Shenzhen SDG Information is 1.21 times less risky than Hithink RoyalFlush. It trades about 0.01 of its potential returns per unit of risk. Hithink RoyalFlush Info is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 9,423 in Hithink RoyalFlush Info on September 13, 2024 and sell it today you would earn a total of 22,380 from holding Hithink RoyalFlush Info or generate 237.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen SDG Information vs. Hithink RoyalFlush Info
Performance |
| Timeline |
| Shenzhen SDG Information |
| Hithink RoyalFlush Info |
Shenzhen SDG and Hithink RoyalFlush Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen SDG and Hithink RoyalFlush
The main advantage of trading using opposite Shenzhen SDG and Hithink RoyalFlush positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen SDG position performs unexpectedly, Hithink RoyalFlush 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 Hithink RoyalFlush will offset losses from the drop in Hithink RoyalFlush's long position.| Shenzhen SDG vs. Industrial and Commercial | Shenzhen SDG vs. China Construction Bank | Shenzhen SDG vs. Bank of China | Shenzhen SDG vs. Agricultural Bank of |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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