Correlation Between Shenyang Huitian and Xiamen Jihong
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By analyzing existing cross correlation between Shenyang Huitian Thermal and Xiamen Jihong Package, you can compare the effects of market volatilities on Shenyang Huitian and Xiamen Jihong 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 Xiamen Jihong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Xiamen Jihong.
Diversification Opportunities for Shenyang Huitian and Xiamen Jihong
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenyang and Xiamen is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and Xiamen Jihong Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Jihong Package 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 Xiamen Jihong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Jihong Package has no effect on the direction of Shenyang Huitian i.e., Shenyang Huitian and Xiamen Jihong go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Xiamen Jihong
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to generate 0.84 times more return on investment than Xiamen Jihong. However, Shenyang Huitian Thermal is 1.19 times less risky than Xiamen Jihong. It trades about 0.01 of its potential returns per unit of risk. Xiamen Jihong Package is currently generating about 0.0 per unit of risk. If you would invest 329.00 in Shenyang Huitian Thermal on October 16, 2024 and sell it today you would lose (8.00) from holding Shenyang Huitian Thermal or give up 2.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. Xiamen Jihong Package
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Xiamen Jihong Package |
Shenyang Huitian and Xiamen Jihong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Xiamen Jihong
The main advantage of trading using opposite Shenyang Huitian and Xiamen Jihong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian position performs unexpectedly, Xiamen Jihong 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 Xiamen Jihong will offset losses from the drop in Xiamen Jihong's long position.| Shenyang Huitian vs. Xiangyang Automobile Bearing | Shenyang Huitian vs. Anhui Huilong Agricultural | Shenyang Huitian vs. Long Yuan Construction | Shenyang Huitian vs. Masterwork Machinery |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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