Correlation Between Hunan Investment and Leaguer Shenzhen
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By analyzing existing cross correlation between Hunan Investment Group and Leaguer Shenzhen MicroElectronics, you can compare the effects of market volatilities on Hunan Investment and Leaguer Shenzhen 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 Leaguer Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Investment and Leaguer Shenzhen.
Diversification Opportunities for Hunan Investment and Leaguer Shenzhen
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hunan and Leaguer is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Investment Group and Leaguer Shenzhen MicroElectron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leaguer Shenzhen Mic 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 Leaguer Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leaguer Shenzhen Mic has no effect on the direction of Hunan Investment i.e., Hunan Investment and Leaguer Shenzhen go up and down completely randomly.
Pair Corralation between Hunan Investment and Leaguer Shenzhen
Assuming the 90 days trading horizon Hunan Investment Group is expected to generate 1.51 times more return on investment than Leaguer Shenzhen. However, Hunan Investment is 1.51 times more volatile than Leaguer Shenzhen MicroElectronics. It trades about 0.2 of its potential returns per unit of risk. Leaguer Shenzhen MicroElectronics is currently generating about -0.03 per unit of risk. If you would invest 524.00 in Hunan Investment Group on September 13, 2024 and sell it today you would earn a total of 81.00 from holding Hunan Investment Group or generate 15.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Investment Group vs. Leaguer Shenzhen MicroElectron
Performance |
| Timeline |
| Hunan Investment |
| Leaguer Shenzhen Mic |
Hunan Investment and Leaguer Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Investment and Leaguer Shenzhen
The main advantage of trading using opposite Hunan Investment and Leaguer Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Investment position performs unexpectedly, Leaguer Shenzhen 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 Leaguer Shenzhen will offset losses from the drop in Leaguer Shenzhen's long position.| Hunan Investment vs. Kweichow Moutai Co | Hunan Investment vs. Jiangsu Pacific Quartz | Hunan Investment vs. Shenzhen Transsion Holdings | Hunan Investment vs. Beijing Roborock Technology |
| Leaguer Shenzhen vs. Nanjing Putian Telecommunications | Leaguer Shenzhen vs. Tianjin Realty Development | Leaguer Shenzhen vs. Kangyue Technology Co | Leaguer Shenzhen vs. Shenzhen Hifuture Electric |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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