Correlation Between Shenyang Huitian and Eyebright Medical
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By analyzing existing cross correlation between Shenyang Huitian Thermal and Eyebright Medical Technology, you can compare the effects of market volatilities on Shenyang Huitian and Eyebright Medical 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 Eyebright Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Eyebright Medical.
Diversification Opportunities for Shenyang Huitian and Eyebright Medical
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenyang and Eyebright is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and Eyebright Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eyebright Medical 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 Eyebright Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eyebright Medical has no effect on the direction of Shenyang Huitian i.e., Shenyang Huitian and Eyebright Medical go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Eyebright Medical
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to generate 0.75 times more return on investment than Eyebright Medical. However, Shenyang Huitian Thermal is 1.33 times less risky than Eyebright Medical. It trades about 0.14 of its potential returns per unit of risk. Eyebright Medical Technology is currently generating about 0.09 per unit of risk. If you would invest 288.00 in Shenyang Huitian Thermal on September 2, 2024 and sell it today you would earn a total of 82.00 from holding Shenyang Huitian Thermal or generate 28.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. Eyebright Medical Technology
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Eyebright Medical |
Shenyang Huitian and Eyebright Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Eyebright Medical
The main advantage of trading using opposite Shenyang Huitian and Eyebright Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian position performs unexpectedly, Eyebright Medical 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 Eyebright Medical will offset losses from the drop in Eyebright Medical's long position.| Shenyang Huitian vs. China State Construction | Shenyang Huitian vs. Poly Real Estate | Shenyang Huitian vs. China Vanke Co | Shenyang Huitian vs. China Merchants Shekou |
| Eyebright Medical vs. Nanjing Putian Telecommunications | Eyebright Medical vs. Shenzhen Hifuture Electric | Eyebright Medical vs. Tianjin Realty Development | Eyebright Medical vs. Shenyang Huitian Thermal |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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