Correlation Between Shenyang Huitian and Minami Acoustics
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By analyzing existing cross correlation between Shenyang Huitian Thermal and Minami Acoustics Ltd, you can compare the effects of market volatilities on Shenyang Huitian and Minami Acoustics 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 Minami Acoustics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Minami Acoustics.
Diversification Opportunities for Shenyang Huitian and Minami Acoustics
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shenyang and Minami is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and Minami Acoustics Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minami Acoustics 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 Minami Acoustics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minami Acoustics has no effect on the direction of Shenyang Huitian i.e., Shenyang Huitian and Minami Acoustics go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Minami Acoustics
Assuming the 90 days trading horizon Shenyang Huitian is expected to generate 5.57 times less return on investment than Minami Acoustics. But when comparing it to its historical volatility, Shenyang Huitian Thermal is 1.8 times less risky than Minami Acoustics. It trades about 0.05 of its potential returns per unit of risk. Minami Acoustics Ltd is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 2,476 in Minami Acoustics Ltd on November 3, 2024 and sell it today you would earn a total of 3,554 from holding Minami Acoustics Ltd or generate 143.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. Minami Acoustics Ltd
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Minami Acoustics |
Shenyang Huitian and Minami Acoustics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Minami Acoustics
The main advantage of trading using opposite Shenyang Huitian and Minami Acoustics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian position performs unexpectedly, Minami Acoustics 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 Minami Acoustics will offset losses from the drop in Minami Acoustics' long position.| Shenyang Huitian vs. Guocheng Mining Co | Shenyang Huitian vs. Uroica Mining Safety | Shenyang Huitian vs. Zhengzhou Coal Mining | Shenyang Huitian vs. Jiangxi Copper Co |
| Minami Acoustics vs. SSAW Hotels Resorts | Minami Acoustics vs. Chison Medical Technologies | Minami Acoustics vs. Jinling Hotel Corp | Minami Acoustics vs. Zhonghong Pulin Medical |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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