Correlation Between Shenyang Huitian and Shandong Sinoglory
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By analyzing existing cross correlation between Shenyang Huitian Thermal and Shandong Sinoglory Health, you can compare the effects of market volatilities on Shenyang Huitian and Shandong Sinoglory 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 Shandong Sinoglory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Shandong Sinoglory.
Diversification Opportunities for Shenyang Huitian and Shandong Sinoglory
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenyang and Shandong is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and Shandong Sinoglory Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sinoglory Health 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 Shandong Sinoglory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sinoglory Health has no effect on the direction of Shenyang Huitian i.e., Shenyang Huitian and Shandong Sinoglory go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Shandong Sinoglory
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to under-perform the Shandong Sinoglory. In addition to that, Shenyang Huitian is 1.17 times more volatile than Shandong Sinoglory Health. It trades about -0.02 of its total potential returns per unit of risk. Shandong Sinoglory Health is currently generating about 0.15 per unit of volatility. If you would invest 1,171 in Shandong Sinoglory Health on September 3, 2024 and sell it today you would earn a total of 82.00 from holding Shandong Sinoglory Health or generate 7.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. Shandong Sinoglory Health
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Shandong Sinoglory Health |
Shenyang Huitian and Shandong Sinoglory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Shandong Sinoglory
The main advantage of trading using opposite Shenyang Huitian and Shandong Sinoglory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian position performs unexpectedly, Shandong Sinoglory 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 Shandong Sinoglory will offset losses from the drop in Shandong Sinoglory'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 |
| Shandong Sinoglory vs. Beijing Wantai Biological | Shandong Sinoglory vs. Aluminum Corp of | Shandong Sinoglory vs. COL Digital Publishing | Shandong Sinoglory vs. Shaanxi Meineng Clean |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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