Correlation Between Shenyang Huitian and Cansino Biologics
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By analyzing existing cross correlation between Shenyang Huitian Thermal and Cansino Biologics, you can compare the effects of market volatilities on Shenyang Huitian and Cansino Biologics 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 Cansino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Cansino Biologics.
Diversification Opportunities for Shenyang Huitian and Cansino Biologics
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenyang and Cansino is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and Cansino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cansino Biologics 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 Cansino Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cansino Biologics has no effect on the direction of Shenyang Huitian i.e., Shenyang Huitian and Cansino Biologics go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Cansino Biologics
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to generate 0.88 times more return on investment than Cansino Biologics. However, Shenyang Huitian Thermal is 1.14 times less risky than Cansino Biologics. It trades about 0.06 of its potential returns per unit of risk. Cansino Biologics is currently generating about 0.03 per unit of risk. If you would invest 275.00 in Shenyang Huitian Thermal on August 27, 2024 and sell it today you would earn a total of 80.00 from holding Shenyang Huitian Thermal or generate 29.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.44% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. Cansino Biologics
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Cansino Biologics |
Shenyang Huitian and Cansino Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Cansino Biologics
The main advantage of trading using opposite Shenyang Huitian and Cansino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian position performs unexpectedly, Cansino Biologics 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 Cansino Biologics will offset losses from the drop in Cansino Biologics' long position.| Shenyang Huitian vs. Agricultural Bank of | Shenyang Huitian vs. Industrial and Commercial | Shenyang Huitian vs. Bank of China | Shenyang Huitian vs. PetroChina Co Ltd |
| Cansino Biologics vs. Citic Guoan Wine | Cansino Biologics vs. Yankershop Food Co | Cansino Biologics vs. Malion New Materials | Cansino Biologics vs. Gan Yuan Foods |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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