Correlation Between Shenyang Huitian and Kingnet Network
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By analyzing existing cross correlation between Shenyang Huitian Thermal and Kingnet Network Co, you can compare the effects of market volatilities on Shenyang Huitian and Kingnet Network 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 Kingnet Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Kingnet Network.
Diversification Opportunities for Shenyang Huitian and Kingnet Network
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenyang and Kingnet is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and Kingnet Network Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingnet Network 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 Kingnet Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingnet Network has no effect on the direction of Shenyang Huitian i.e., Shenyang Huitian and Kingnet Network go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Kingnet Network
Assuming the 90 days trading horizon Shenyang Huitian is expected to generate 3.08 times less return on investment than Kingnet Network. But when comparing it to its historical volatility, Shenyang Huitian Thermal is 1.28 times less risky than Kingnet Network. It trades about 0.02 of its potential returns per unit of risk. Kingnet Network Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 744.00 in Kingnet Network Co on August 28, 2024 and sell it today you would earn a total of 544.00 from holding Kingnet Network Co or generate 73.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.78% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. Kingnet Network Co
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Kingnet Network |
Shenyang Huitian and Kingnet Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Kingnet Network
The main advantage of trading using opposite Shenyang Huitian and Kingnet Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian position performs unexpectedly, Kingnet Network 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 Kingnet Network will offset losses from the drop in Kingnet Network's long position.| Shenyang Huitian vs. Dongfeng Automobile Co | Shenyang Huitian vs. Do Fluoride Chemicals Co | Shenyang Huitian vs. Hubei Xingfa Chemicals | Shenyang Huitian vs. Shenzhen Kexin Communication |
| Kingnet Network vs. Ming Yang Smart | Kingnet Network vs. 159681 | Kingnet Network vs. 159005 | Kingnet Network vs. Loctek Ergonomic Technology |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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