Correlation Between Shenyang Huitian and Shenzhen Centralcon
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By analyzing existing cross correlation between Shenyang Huitian Thermal and Shenzhen Centralcon Investment, you can compare the effects of market volatilities on Shenyang Huitian and Shenzhen Centralcon 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 Shenzhen Centralcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Shenzhen Centralcon.
Diversification Opportunities for Shenyang Huitian and Shenzhen Centralcon
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenyang and Shenzhen is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and Shenzhen Centralcon Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Centralcon 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 Shenzhen Centralcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Centralcon has no effect on the direction of Shenyang Huitian i.e., Shenyang Huitian and Shenzhen Centralcon go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Shenzhen Centralcon
Assuming the 90 days trading horizon Shenyang Huitian is expected to generate 1.8 times less return on investment than Shenzhen Centralcon. In addition to that, Shenyang Huitian is 1.22 times more volatile than Shenzhen Centralcon Investment. It trades about 0.07 of its total potential returns per unit of risk. Shenzhen Centralcon Investment is currently generating about 0.15 per unit of volatility. If you would invest 507.00 in Shenzhen Centralcon Investment on September 5, 2024 and sell it today you would earn a total of 35.00 from holding Shenzhen Centralcon Investment or generate 6.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. Shenzhen Centralcon Investment
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Shenzhen Centralcon |
Shenyang Huitian and Shenzhen Centralcon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Shenzhen Centralcon
The main advantage of trading using opposite Shenyang Huitian and Shenzhen Centralcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian position performs unexpectedly, Shenzhen Centralcon 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 Shenzhen Centralcon will offset losses from the drop in Shenzhen Centralcon's long position.| Shenyang Huitian vs. China Nonferrous Metal | Shenyang Huitian vs. Hefei Metalforming Mach | Shenyang Huitian vs. Zhejiang Yayi Metal | Shenyang Huitian vs. Minmetals Capital 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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