Correlation Between Shenyang Huitian and Sunny Loan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenyang Huitian Thermal and Sunny Loan Top, you can compare the effects of market volatilities on Shenyang Huitian and Sunny Loan 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 Sunny Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Sunny Loan.
Diversification Opportunities for Shenyang Huitian and Sunny Loan
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenyang and Sunny is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and Sunny Loan Top in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunny Loan Top 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 Sunny Loan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunny Loan Top has no effect on the direction of Shenyang Huitian i.e., Shenyang Huitian and Sunny Loan go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Sunny Loan
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to under-perform the Sunny Loan. But the stock apears to be less risky and, when comparing its historical volatility, Shenyang Huitian Thermal is 1.11 times less risky than Sunny Loan. The stock trades about -0.25 of its potential returns per unit of risk. The Sunny Loan Top is currently generating about -0.21 of returns per unit of risk over similar time horizon. If you would invest 1,135 in Sunny Loan Top on October 17, 2024 and sell it today you would lose (224.00) from holding Sunny Loan Top or give up 19.74% 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. Sunny Loan Top
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Sunny Loan Top |
Shenyang Huitian and Sunny Loan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Sunny Loan
The main advantage of trading using opposite Shenyang Huitian and Sunny Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian position performs unexpectedly, Sunny Loan 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 Sunny Loan will offset losses from the drop in Sunny Loan's long position.| Shenyang Huitian vs. Maoming Petro Chemical Shihua | Shenyang Huitian vs. Jinsanjiang Silicon Material | Shenyang Huitian vs. HeBei Jinniu Chemical | Shenyang Huitian vs. Chongqing Sulian Plastic |
| Sunny Loan vs. Anhui Gujing Distillery | Sunny Loan vs. Beijing Shunxin Agriculture | Sunny Loan vs. Shenyang Huitian Thermal | Sunny Loan vs. Anhui Tongguan Copper |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |