Correlation Between Shenyang Huitian and Guangdong Jinma
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By analyzing existing cross correlation between Shenyang Huitian Thermal and Guangdong Jinma Entertainment, you can compare the effects of market volatilities on Shenyang Huitian and Guangdong Jinma 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 Guangdong Jinma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Guangdong Jinma.
Diversification Opportunities for Shenyang Huitian and Guangdong Jinma
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenyang and Guangdong is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and Guangdong Jinma Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jinma Ente 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 Guangdong Jinma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jinma Ente has no effect on the direction of Shenyang Huitian i.e., Shenyang Huitian and Guangdong Jinma go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Guangdong Jinma
Assuming the 90 days trading horizon Shenyang Huitian is expected to generate 3.42 times less return on investment than Guangdong Jinma. But when comparing it to its historical volatility, Shenyang Huitian Thermal is 1.21 times less risky than Guangdong Jinma. It trades about 0.03 of its potential returns per unit of risk. Guangdong Jinma Entertainment is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,558 in Guangdong Jinma Entertainment on September 1, 2024 and sell it today you would earn a total of 103.00 from holding Guangdong Jinma Entertainment or generate 6.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. Guangdong Jinma Entertainment
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Guangdong Jinma Ente |
Shenyang Huitian and Guangdong Jinma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Guangdong Jinma
The main advantage of trading using opposite Shenyang Huitian and Guangdong Jinma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian position performs unexpectedly, Guangdong Jinma 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 Guangdong Jinma will offset losses from the drop in Guangdong Jinma's long position.| Shenyang Huitian vs. Shandong Polymer Biochemicals | Shenyang Huitian vs. AUPU Home Style | Shenyang Huitian vs. Zoy Home Furnishing | Shenyang Huitian vs. Jahen Household Products |
| Guangdong Jinma vs. Nanjing Putian Telecommunications | Guangdong Jinma vs. Shenzhen Hifuture Electric | Guangdong Jinma vs. Tianjin Realty Development | Guangdong Jinma vs. Shenyang Huitian Thermal |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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