Correlation Between Shenyang Huitian and Qinghaihuading Industrial
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By analyzing existing cross correlation between Shenyang Huitian Thermal and Qinghaihuading Industrial Co, you can compare the effects of market volatilities on Shenyang Huitian and Qinghaihuading Industrial 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 Qinghaihuading Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Qinghaihuading Industrial.
Diversification Opportunities for Shenyang Huitian and Qinghaihuading Industrial
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenyang and Qinghaihuading is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and Qinghaihuading Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qinghaihuading Industrial 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 Qinghaihuading Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qinghaihuading Industrial has no effect on the direction of Shenyang Huitian i.e., Shenyang Huitian and Qinghaihuading Industrial go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Qinghaihuading Industrial
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to under-perform the Qinghaihuading Industrial. In addition to that, Shenyang Huitian is 1.22 times more volatile than Qinghaihuading Industrial Co. It trades about -0.02 of its total potential returns per unit of risk. Qinghaihuading Industrial Co is currently generating about 0.05 per unit of volatility. If you would invest 436.00 in Qinghaihuading Industrial Co on September 3, 2024 and sell it today you would earn a total of 9.00 from holding Qinghaihuading Industrial Co or generate 2.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. Qinghaihuading Industrial Co
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Qinghaihuading Industrial |
Shenyang Huitian and Qinghaihuading Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Qinghaihuading Industrial
The main advantage of trading using opposite Shenyang Huitian and Qinghaihuading Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian position performs unexpectedly, Qinghaihuading Industrial 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 Qinghaihuading Industrial will offset losses from the drop in Qinghaihuading Industrial's long position.| Shenyang Huitian vs. Industrial and Commercial | Shenyang Huitian vs. Agricultural Bank of | Shenyang Huitian vs. China Construction Bank | Shenyang Huitian vs. Bank of China |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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