Correlation Between Shenyang Huitian and Chahua Modern
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By analyzing existing cross correlation between Shenyang Huitian Thermal and Chahua Modern Housewares, you can compare the effects of market volatilities on Shenyang Huitian and Chahua Modern 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 Chahua Modern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Chahua Modern.
Diversification Opportunities for Shenyang Huitian and Chahua Modern
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shenyang and Chahua is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and Chahua Modern Housewares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chahua Modern Housewares 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 Chahua Modern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chahua Modern Housewares has no effect on the direction of Shenyang Huitian i.e., Shenyang Huitian and Chahua Modern go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Chahua Modern
Assuming the 90 days trading horizon Shenyang Huitian is expected to generate 10.09 times less return on investment than Chahua Modern. In addition to that, Shenyang Huitian is 1.0 times more volatile than Chahua Modern Housewares. It trades about 0.01 of its total potential returns per unit of risk. Chahua Modern Housewares is currently generating about 0.07 per unit of volatility. If you would invest 1,842 in Chahua Modern Housewares on October 26, 2024 and sell it today you would earn a total of 232.00 from holding Chahua Modern Housewares or generate 12.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. Chahua Modern Housewares
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Chahua Modern Housewares |
Shenyang Huitian and Chahua Modern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Chahua Modern
The main advantage of trading using opposite Shenyang Huitian and Chahua Modern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian position performs unexpectedly, Chahua Modern 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 Chahua Modern will offset losses from the drop in Chahua Modern's long position.| Shenyang Huitian vs. Chahua Modern Housewares | Shenyang Huitian vs. Cansino Biologics | Shenyang Huitian vs. Hainan Haiqi Transportation | Shenyang Huitian vs. Shaanxi Meineng Clean |
| Chahua Modern vs. Bus Online Co | Chahua Modern vs. Holitech Technology Co | Chahua Modern vs. Gome Telecom Equipment | Chahua Modern vs. Cultural Investment Holdings |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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