Correlation Between Shenyang Huitian and Jiangsu Changfa
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By analyzing existing cross correlation between Shenyang Huitian Thermal and Jiangsu Changfa Refrigeration, you can compare the effects of market volatilities on Shenyang Huitian and Jiangsu Changfa 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 Jiangsu Changfa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Jiangsu Changfa.
Diversification Opportunities for Shenyang Huitian and Jiangsu Changfa
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenyang and Jiangsu is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and Jiangsu Changfa Refrigeration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Changfa Refr 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 Jiangsu Changfa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Changfa Refr has no effect on the direction of Shenyang Huitian i.e., Shenyang Huitian and Jiangsu Changfa go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Jiangsu Changfa
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to generate 0.95 times more return on investment than Jiangsu Changfa. However, Shenyang Huitian Thermal is 1.05 times less risky than Jiangsu Changfa. It trades about 0.02 of its potential returns per unit of risk. Jiangsu Changfa Refrigeration is currently generating about 0.01 per unit of risk. If you would invest 358.00 in Shenyang Huitian Thermal on September 2, 2024 and sell it today you would earn a total of 12.00 from holding Shenyang Huitian Thermal or generate 3.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. Jiangsu Changfa Refrigeration
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Jiangsu Changfa Refr |
Shenyang Huitian and Jiangsu Changfa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Jiangsu Changfa
The main advantage of trading using opposite Shenyang Huitian and Jiangsu Changfa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian position performs unexpectedly, Jiangsu Changfa 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 Jiangsu Changfa will offset losses from the drop in Jiangsu Changfa's long position.| Shenyang Huitian vs. China State Construction | Shenyang Huitian vs. Poly Real Estate | Shenyang Huitian vs. China Vanke Co | Shenyang Huitian vs. China Merchants Shekou |
| Jiangsu Changfa vs. Postal Savings Bank | Jiangsu Changfa vs. Chahua Modern Housewares | Jiangsu Changfa vs. Harbin Hatou Investment | Jiangsu Changfa vs. MayAir Technology 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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