Correlation Between Shenyang Huitian and China Vanke
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By analyzing existing cross correlation between Shenyang Huitian Thermal and China Vanke Co, you can compare the effects of market volatilities on Shenyang Huitian and China Vanke 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 Shenyang Huitian with a short position of China Vanke. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and China Vanke.
Diversification Opportunities for Shenyang Huitian and China Vanke
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenyang and China is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and China Vanke Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Vanke and Shenyang Huitian 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 Shenyang Huitian Thermal are associated (or correlated) with China Vanke. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Vanke has no effect on the direction of Shenyang Huitian i.e., Shenyang Huitian and China Vanke go up and down completely randomly.
Pair Corralation between Shenyang Huitian and China Vanke
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to generate 1.41 times more return on investment than China Vanke. However, Shenyang Huitian is 1.41 times more volatile than China Vanke Co. It trades about -0.05 of its potential returns per unit of risk. China Vanke Co is currently generating about -0.17 per unit of risk. If you would invest 396.00 in Shenyang Huitian Thermal on September 13, 2024 and sell it today you would lose (12.00) from holding Shenyang Huitian Thermal or give up 3.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. China Vanke Co
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| China Vanke |
Shenyang Huitian and China Vanke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and China Vanke
The main advantage of trading using opposite Shenyang Huitian and China Vanke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian position performs unexpectedly, China Vanke 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 China Vanke will offset losses from the drop in China Vanke's long position.| Shenyang Huitian vs. Zhangjiagang Freetrade Science | Shenyang Huitian vs. Citic Guoan Wine | Shenyang Huitian vs. YiDong Electronics Technology | Shenyang Huitian vs. Success Electronics |
| China Vanke vs. Haima Automobile Group | China Vanke vs. Shanghai Rendu Biotechnology | China Vanke vs. Shenzhen Bioeasy Biotechnology | China Vanke vs. Anhui Jianghuai Automobile |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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