Correlation Between Hunan Investment and Sungrow Power
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By analyzing existing cross correlation between Hunan Investment Group and Sungrow Power Supply, you can compare the effects of market volatilities on Hunan Investment and Sungrow Power 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 Sungrow Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Investment and Sungrow Power.
Diversification Opportunities for Hunan Investment and Sungrow Power
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hunan and Sungrow is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Investment Group and Sungrow Power Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sungrow Power Supply 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 Sungrow Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sungrow Power Supply has no effect on the direction of Hunan Investment i.e., Hunan Investment and Sungrow Power go up and down completely randomly.
Pair Corralation between Hunan Investment and Sungrow Power
Assuming the 90 days trading horizon Hunan Investment Group is expected to generate 1.55 times more return on investment than Sungrow Power. However, Hunan Investment is 1.55 times more volatile than Sungrow Power Supply. It trades about 0.2 of its potential returns per unit of risk. Sungrow Power Supply is currently generating about -0.27 per unit of risk. If you would invest 515.00 in Hunan Investment Group on September 15, 2024 and sell it today you would earn a total of 84.00 from holding Hunan Investment Group or generate 16.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hunan Investment Group vs. Sungrow Power Supply
Performance |
| Timeline |
| Hunan Investment |
| Sungrow Power Supply |
Hunan Investment and Sungrow Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Investment and Sungrow Power
The main advantage of trading using opposite Hunan Investment and Sungrow Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Investment position performs unexpectedly, Sungrow Power 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 Sungrow Power will offset losses from the drop in Sungrow Power's long position.| Hunan Investment vs. ChengDu Hi Tech Development | Hunan Investment vs. Ping An Insurance | Hunan Investment vs. Gifore Agricultural Machinery | Hunan Investment vs. China Railway Construction |
| Sungrow Power vs. Zoje Resources Investment | Sungrow Power vs. Beijing Mainstreets Investment | Sungrow Power vs. Yili Chuanning Biotechnology | Sungrow Power vs. Hunan Investment Group |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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