Correlation Between Shenyang Huitian and Changzhou Almaden
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenyang Huitian Thermal and Changzhou Almaden Co, you can compare the effects of market volatilities on Shenyang Huitian and Changzhou Almaden 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 Changzhou Almaden. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Changzhou Almaden.
Diversification Opportunities for Shenyang Huitian and Changzhou Almaden
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenyang and Changzhou is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and Changzhou Almaden Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changzhou Almaden 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 Changzhou Almaden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changzhou Almaden has no effect on the direction of Shenyang Huitian i.e., Shenyang Huitian and Changzhou Almaden go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Changzhou Almaden
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to under-perform the Changzhou Almaden. But the stock apears to be less risky and, when comparing its historical volatility, Shenyang Huitian Thermal is 1.14 times less risky than Changzhou Almaden. The stock trades about -0.05 of its potential returns per unit of risk. The Changzhou Almaden Co is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,857 in Changzhou Almaden Co on September 13, 2024 and sell it today you would lose (31.00) from holding Changzhou Almaden Co or give up 1.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. Changzhou Almaden Co
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Changzhou Almaden |
Shenyang Huitian and Changzhou Almaden Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Changzhou Almaden
The main advantage of trading using opposite Shenyang Huitian and Changzhou Almaden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian position performs unexpectedly, Changzhou Almaden 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 Changzhou Almaden will offset losses from the drop in Changzhou Almaden's long position.| Shenyang Huitian vs. Zhangjiagang Freetrade Science | Shenyang Huitian vs. Citic Guoan Wine | Shenyang Huitian vs. YiDong Electronics Technology | Shenyang Huitian vs. Success Electronics |
| Changzhou Almaden vs. HaiXin Foods Co | Changzhou Almaden vs. Ping An Insurance | Changzhou Almaden vs. Marssenger Kitchenware Co | Changzhou Almaden vs. V V Food |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |