Correlation Between Shenyang Huitian and Zoje Resources
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By analyzing existing cross correlation between Shenyang Huitian Thermal and Zoje Resources Investment, you can compare the effects of market volatilities on Shenyang Huitian and Zoje Resources 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 Zoje Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Zoje Resources.
Diversification Opportunities for Shenyang Huitian and Zoje Resources
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenyang and Zoje is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and Zoje Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoje Resources Investment 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 Zoje Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoje Resources Investment has no effect on the direction of Shenyang Huitian i.e., Shenyang Huitian and Zoje Resources go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Zoje Resources
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to under-perform the Zoje Resources. But the stock apears to be less risky and, when comparing its historical volatility, Shenyang Huitian Thermal is 1.47 times less risky than Zoje Resources. The stock trades about -0.07 of its potential returns per unit of risk. The Zoje Resources Investment is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 251.00 in Zoje Resources Investment on October 29, 2024 and sell it today you would lose (3.00) from holding Zoje Resources Investment or give up 1.2% 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. Zoje Resources Investment
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Zoje Resources Investment |
Shenyang Huitian and Zoje Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Zoje Resources
The main advantage of trading using opposite Shenyang Huitian and Zoje Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian position performs unexpectedly, Zoje Resources 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 Zoje Resources will offset losses from the drop in Zoje Resources' long position.| Shenyang Huitian vs. Gansu Huangtai Wine marketing | Shenyang Huitian vs. Xinjiang Communications Construction | Shenyang Huitian vs. Orinko Advanced Plastics | Shenyang Huitian vs. Jiangnan Mould Plastic |
| Zoje Resources vs. Linzhou Heavy Machinery | Zoje Resources vs. Guangdong Qunxing Toys | Zoje Resources vs. Shaanxi Construction Machinery | Zoje Resources vs. Allied Machinery 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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