Correlation Between Shenyang Huitian and Huasi Agricultural
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By analyzing existing cross correlation between Shenyang Huitian Thermal and Huasi Agricultural Development, you can compare the effects of market volatilities on Shenyang Huitian and Huasi Agricultural 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 Huasi Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Huasi Agricultural.
Diversification Opportunities for Shenyang Huitian and Huasi Agricultural
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenyang and Huasi is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and Huasi Agricultural Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huasi Agricultural 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 Huasi Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huasi Agricultural has no effect on the direction of Shenyang Huitian i.e., Shenyang Huitian and Huasi Agricultural go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Huasi Agricultural
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to generate 0.89 times more return on investment than Huasi Agricultural. However, Shenyang Huitian Thermal is 1.13 times less risky than Huasi Agricultural. It trades about 0.03 of its potential returns per unit of risk. Huasi Agricultural Development is currently generating about 0.0 per unit of risk. If you would invest 281.00 in Shenyang Huitian Thermal on October 16, 2024 and sell it today you would earn a total of 52.00 from holding Shenyang Huitian Thermal or generate 18.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. Huasi Agricultural Development
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Huasi Agricultural |
Shenyang Huitian and Huasi Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Huasi Agricultural
The main advantage of trading using opposite Shenyang Huitian and Huasi Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian position performs unexpectedly, Huasi Agricultural 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 Huasi Agricultural will offset losses from the drop in Huasi Agricultural's long position.| Shenyang Huitian vs. Longmaster Information Tech | Shenyang Huitian vs. Invengo Information Technology | Shenyang Huitian vs. Wonders Information | Shenyang Huitian vs. Songz Automobile Air |
| Huasi Agricultural vs. Shenyang Huitian Thermal | Huasi Agricultural vs. Jonjee Hi tech Industrial | Huasi Agricultural vs. Ningbo Jintian Copper | Huasi Agricultural vs. Guangdong Jingyi Metal |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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