Correlation Between Hengli Industrial and Shanghai Rongtai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hengli Industrial Development and Shanghai Rongtai Health, you can compare the effects of market volatilities on Hengli Industrial and Shanghai Rongtai 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 Hengli Industrial with a short position of Shanghai Rongtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Industrial and Shanghai Rongtai.
Diversification Opportunities for Hengli Industrial and Shanghai Rongtai
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hengli and Shanghai is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Industrial Development and Shanghai Rongtai Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rongtai Health and Hengli Industrial 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 Hengli Industrial Development are associated (or correlated) with Shanghai Rongtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rongtai Health has no effect on the direction of Hengli Industrial i.e., Hengli Industrial and Shanghai Rongtai go up and down completely randomly.
Pair Corralation between Hengli Industrial and Shanghai Rongtai
Assuming the 90 days trading horizon Hengli Industrial Development is expected to generate 1.42 times more return on investment than Shanghai Rongtai. However, Hengli Industrial is 1.42 times more volatile than Shanghai Rongtai Health. It trades about 0.0 of its potential returns per unit of risk. Shanghai Rongtai Health is currently generating about -0.01 per unit of risk. If you would invest 282.00 in Hengli Industrial Development on November 1, 2024 and sell it today you would lose (52.00) from holding Hengli Industrial Development or give up 18.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengli Industrial Development vs. Shanghai Rongtai Health
Performance |
| Timeline |
| Hengli Industrial |
| Shanghai Rongtai Health |
Hengli Industrial and Shanghai Rongtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengli Industrial and Shanghai Rongtai
The main advantage of trading using opposite Hengli Industrial and Shanghai Rongtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Industrial position performs unexpectedly, Shanghai Rongtai 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 Shanghai Rongtai will offset losses from the drop in Shanghai Rongtai's long position.| Hengli Industrial vs. Kweichow Moutai Co | Hengli Industrial vs. Jiangsu Pacific Quartz | Hengli Industrial vs. Shenzhen Transsion Holdings | Hengli Industrial vs. Beijing Roborock Technology |
| Shanghai Rongtai vs. Liaoning Chengda Biotechnology | Shanghai Rongtai vs. Bloomage Biotechnology Corp | Shanghai Rongtai vs. Anhui Tongguan Copper | Shanghai Rongtai vs. Shenyang Huitian Thermal |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |