Correlation Between Shenyang Huitian and BlueFocus Communication
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By analyzing existing cross correlation between Shenyang Huitian Thermal and BlueFocus Communication Group, you can compare the effects of market volatilities on Shenyang Huitian and BlueFocus Communication 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 BlueFocus Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and BlueFocus Communication.
Diversification Opportunities for Shenyang Huitian and BlueFocus Communication
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenyang and BlueFocus is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and BlueFocus Communication Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlueFocus Communication 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 BlueFocus Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlueFocus Communication has no effect on the direction of Shenyang Huitian i.e., Shenyang Huitian and BlueFocus Communication go up and down completely randomly.
Pair Corralation between Shenyang Huitian and BlueFocus Communication
Assuming the 90 days trading horizon Shenyang Huitian is expected to generate 3.12 times less return on investment than BlueFocus Communication. But when comparing it to its historical volatility, Shenyang Huitian Thermal is 1.53 times less risky than BlueFocus Communication. It trades about 0.13 of its potential returns per unit of risk. BlueFocus Communication Group is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 757.00 in BlueFocus Communication Group on August 24, 2024 and sell it today you would earn a total of 317.00 from holding BlueFocus Communication Group or generate 41.88% 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. BlueFocus Communication Group
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| BlueFocus Communication |
Shenyang Huitian and BlueFocus Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and BlueFocus Communication
The main advantage of trading using opposite Shenyang Huitian and BlueFocus Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian position performs unexpectedly, BlueFocus Communication 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 BlueFocus Communication will offset losses from the drop in BlueFocus Communication's long position.| Shenyang Huitian vs. China Mobile Limited | Shenyang Huitian vs. Agricultural Bank of | Shenyang Huitian vs. Industrial and Commercial | Shenyang Huitian vs. China Construction Bank |
| BlueFocus Communication vs. Kweichow Moutai Co | BlueFocus Communication vs. Contemporary Amperex Technology | BlueFocus Communication vs. G bits Network Technology | BlueFocus Communication vs. BYD Co Ltd |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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