Correlation Between Shenyang Huitian and Guangdong Jingyi
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By analyzing existing cross correlation between Shenyang Huitian Thermal and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Shenyang Huitian and Guangdong Jingyi 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 Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Guangdong Jingyi.
Diversification Opportunities for Shenyang Huitian and Guangdong Jingyi
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenyang and Guangdong is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal 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 Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Shenyang Huitian i.e., Shenyang Huitian and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Guangdong Jingyi
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to generate 1.46 times more return on investment than Guangdong Jingyi. However, Shenyang Huitian is 1.46 times more volatile than Guangdong Jingyi Metal. It trades about -0.1 of its potential returns per unit of risk. Guangdong Jingyi Metal is currently generating about -0.23 per unit of risk. If you would invest 379.00 in Shenyang Huitian Thermal on October 11, 2024 and sell it today you would lose (45.00) from holding Shenyang Huitian Thermal or give up 11.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. Guangdong Jingyi Metal
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Guangdong Jingyi Metal |
Shenyang Huitian and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Guangdong Jingyi
The main advantage of trading using opposite Shenyang Huitian and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian position performs unexpectedly, Guangdong Jingyi 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 Guangdong Jingyi will offset losses from the drop in Guangdong Jingyi's long position.| Shenyang Huitian vs. Ping An Insurance | Shenyang Huitian vs. Bank of Suzhou | Shenyang Huitian vs. Xiamen Bank Co | Shenyang Huitian vs. Digiwin Software Co |
| Guangdong Jingyi vs. Heren Health Co | Guangdong Jingyi vs. Jiugui Liquor Co | Guangdong Jingyi vs. Hangzhou Minsheng Healthcare | Guangdong Jingyi vs. Shandong Sinoglory Health |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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