Correlation Between Hunan Investment and Shaanxi Meineng
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By analyzing existing cross correlation between Hunan Investment Group and Shaanxi Meineng Clean, you can compare the effects of market volatilities on Hunan Investment and Shaanxi Meineng 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 Hunan Investment with a short position of Shaanxi Meineng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Investment and Shaanxi Meineng.
Diversification Opportunities for Hunan Investment and Shaanxi Meineng
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hunan and Shaanxi is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Investment Group and Shaanxi Meineng Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Meineng Clean and Hunan Investment 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 Hunan Investment Group are associated (or correlated) with Shaanxi Meineng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Meineng Clean has no effect on the direction of Hunan Investment i.e., Hunan Investment and Shaanxi Meineng go up and down completely randomly.
Pair Corralation between Hunan Investment and Shaanxi Meineng
Assuming the 90 days trading horizon Hunan Investment Group is expected to under-perform the Shaanxi Meineng. But the stock apears to be less risky and, when comparing its historical volatility, Hunan Investment Group is 1.0 times less risky than Shaanxi Meineng. The stock trades about -0.01 of its potential returns per unit of risk. The Shaanxi Meineng Clean is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,238 in Shaanxi Meineng Clean on October 29, 2024 and sell it today you would lose (2.00) from holding Shaanxi Meineng Clean or give up 0.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Investment Group vs. Shaanxi Meineng Clean
Performance |
| Timeline |
| Hunan Investment |
| Shaanxi Meineng Clean |
Hunan Investment and Shaanxi Meineng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Investment and Shaanxi Meineng
The main advantage of trading using opposite Hunan Investment and Shaanxi Meineng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Investment position performs unexpectedly, Shaanxi Meineng 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 Shaanxi Meineng will offset losses from the drop in Shaanxi Meineng's long position.| Hunan Investment vs. Marssenger Kitchenware Co | Hunan Investment vs. Fujian Anjoy Foods | Hunan Investment vs. Xinjiang Baodi Mining | Hunan Investment vs. Anhui Deli Household |
| Shaanxi Meineng vs. Xiamen Jihong Package | Shaanxi Meineng vs. Shantou Wanshun Package | Shaanxi Meineng vs. Cultural Investment Holdings | Shaanxi Meineng vs. Xiandai Investment 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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