Correlation Between Shenyang Huitian and Zhejiang Huayou
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By analyzing existing cross correlation between Shenyang Huitian Thermal and Zhejiang Huayou Cobalt, you can compare the effects of market volatilities on Shenyang Huitian and Zhejiang Huayou 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 Zhejiang Huayou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Zhejiang Huayou.
Diversification Opportunities for Shenyang Huitian and Zhejiang Huayou
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenyang and Zhejiang is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and Zhejiang Huayou Cobalt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Huayou Cobalt 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 Zhejiang Huayou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Huayou Cobalt has no effect on the direction of Shenyang Huitian i.e., Shenyang Huitian and Zhejiang Huayou go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Zhejiang Huayou
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to generate 1.08 times more return on investment than Zhejiang Huayou. However, Shenyang Huitian is 1.08 times more volatile than Zhejiang Huayou Cobalt. It trades about 0.01 of its potential returns per unit of risk. Zhejiang Huayou Cobalt is currently generating about -0.05 per unit of risk. If you would invest 329.00 in Shenyang Huitian Thermal on October 16, 2024 and sell it today you would lose (8.00) from holding Shenyang Huitian Thermal or give up 2.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. Zhejiang Huayou Cobalt
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Zhejiang Huayou Cobalt |
Shenyang Huitian and Zhejiang Huayou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Zhejiang Huayou
The main advantage of trading using opposite Shenyang Huitian and Zhejiang Huayou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian position performs unexpectedly, Zhejiang Huayou 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 Zhejiang Huayou will offset losses from the drop in Zhejiang Huayou's long position.| Shenyang Huitian vs. Xiangyang Automobile Bearing | Shenyang Huitian vs. Anhui Huilong Agricultural | Shenyang Huitian vs. Long Yuan Construction | Shenyang Huitian vs. Masterwork Machinery |
| Zhejiang Huayou vs. Zijin Mining Group | Zhejiang Huayou vs. Wanhua Chemical Group | Zhejiang Huayou vs. Baoshan Iron Steel | Zhejiang Huayou vs. Shandong Gold Mining |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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