Correlation Between Shenyang Huitian and Jiangsu Yueda
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By analyzing existing cross correlation between Shenyang Huitian Thermal and Jiangsu Yueda Investment, you can compare the effects of market volatilities on Shenyang Huitian and Jiangsu Yueda 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 Yueda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Jiangsu Yueda.
Diversification Opportunities for Shenyang Huitian and Jiangsu Yueda
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenyang and Jiangsu is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and Jiangsu Yueda Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yueda Investment 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 Yueda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yueda Investment has no effect on the direction of Shenyang Huitian i.e., Shenyang Huitian and Jiangsu Yueda go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Jiangsu Yueda
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to generate 0.98 times more return on investment than Jiangsu Yueda. However, Shenyang Huitian Thermal is 1.02 times less risky than Jiangsu Yueda. It trades about 0.06 of its potential returns per unit of risk. Jiangsu Yueda Investment is currently generating about 0.03 per unit of risk. If you would invest 296.00 in Shenyang Huitian Thermal on September 14, 2024 and sell it today you would earn a total of 102.00 from holding Shenyang Huitian Thermal or generate 34.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.58% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. Jiangsu Yueda Investment
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Jiangsu Yueda Investment |
Shenyang Huitian and Jiangsu Yueda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Jiangsu Yueda
The main advantage of trading using opposite Shenyang Huitian and Jiangsu Yueda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian position performs unexpectedly, Jiangsu Yueda 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 Yueda will offset losses from the drop in Jiangsu Yueda's long position.| Shenyang Huitian vs. Agricultural Bank of | Shenyang Huitian vs. Industrial and Commercial | Shenyang Huitian vs. Bank of China | Shenyang Huitian vs. PetroChina Co Ltd |
| Jiangsu Yueda vs. Lutian Machinery Co | Jiangsu Yueda vs. China Longyuan Power | Jiangsu Yueda vs. PetroChina Co Ltd | Jiangsu Yueda 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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