Correlation Between Shenyang Huitian and Jiangsu Zhongtian
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By analyzing existing cross correlation between Shenyang Huitian Thermal and Jiangsu Zhongtian Technology, you can compare the effects of market volatilities on Shenyang Huitian and Jiangsu Zhongtian 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 Jiangsu Zhongtian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Jiangsu Zhongtian.
Diversification Opportunities for Shenyang Huitian and Jiangsu Zhongtian
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenyang and Jiangsu is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and Jiangsu Zhongtian Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Zhongtian 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 Jiangsu Zhongtian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Zhongtian has no effect on the direction of Shenyang Huitian i.e., Shenyang Huitian and Jiangsu Zhongtian go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Jiangsu Zhongtian
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to generate 3.76 times more return on investment than Jiangsu Zhongtian. However, Shenyang Huitian is 3.76 times more volatile than Jiangsu Zhongtian Technology. It trades about -0.16 of its potential returns per unit of risk. Jiangsu Zhongtian Technology is currently generating about -0.68 per unit of risk. If you would invest 383.00 in Shenyang Huitian Thermal on October 14, 2024 and sell it today you would lose (62.00) from holding Shenyang Huitian Thermal or give up 16.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. Jiangsu Zhongtian Technology
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Jiangsu Zhongtian |
Shenyang Huitian and Jiangsu Zhongtian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Jiangsu Zhongtian
The main advantage of trading using opposite Shenyang Huitian and Jiangsu Zhongtian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian position performs unexpectedly, Jiangsu Zhongtian 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 Jiangsu Zhongtian will offset losses from the drop in Jiangsu Zhongtian's long position.| Shenyang Huitian vs. Xinhua Winshare Publishing | Shenyang Huitian vs. Tianshui Huatian Technology | Shenyang Huitian vs. Digiwin Software Co | Shenyang Huitian vs. Eyebright Medical Technology |
| Jiangsu Zhongtian vs. Shanghai Yaoji Playing | Jiangsu Zhongtian vs. Sinomach General Machinery | Jiangsu Zhongtian vs. Shannon Semiconductor Technology | Jiangsu Zhongtian vs. Shanghai V Test Semiconductor |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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