Correlation Between Shenyang Huitian and Suwen Electric
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By analyzing existing cross correlation between Shenyang Huitian Thermal and Suwen Electric Energy, you can compare the effects of market volatilities on Shenyang Huitian and Suwen Electric 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 Suwen Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Suwen Electric.
Diversification Opportunities for Shenyang Huitian and Suwen Electric
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenyang and Suwen is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and Suwen Electric Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suwen Electric Energy 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 Suwen Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suwen Electric Energy has no effect on the direction of Shenyang Huitian i.e., Shenyang Huitian and Suwen Electric go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Suwen Electric
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to generate 1.06 times more return on investment than Suwen Electric. However, Shenyang Huitian is 1.06 times more volatile than Suwen Electric Energy. It trades about -0.04 of its potential returns per unit of risk. Suwen Electric Energy is currently generating about -0.08 per unit of risk. If you would invest 393.00 in Shenyang Huitian Thermal on September 12, 2024 and sell it today you would lose (9.00) from holding Shenyang Huitian Thermal or give up 2.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. Suwen Electric Energy
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Suwen Electric Energy |
Shenyang Huitian and Suwen Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Suwen Electric
The main advantage of trading using opposite Shenyang Huitian and Suwen Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian position performs unexpectedly, Suwen Electric 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 Suwen Electric will offset losses from the drop in Suwen Electric's long position.| Shenyang Huitian vs. Gansu Jiu Steel | Shenyang Huitian vs. Shandong Mining Machinery | Shenyang Huitian vs. Aba Chemicals Corp | Shenyang Huitian vs. BlueFocus Communication Group |
| Suwen Electric vs. Xiangyu Medical Co | Suwen Electric vs. Blue Sail Medical | Suwen Electric vs. Guangzhou Boji Medical | Suwen Electric vs. Hengkang Medical Group |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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