Correlation Between Shenyang Huitian and Eastern Communications
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By analyzing existing cross correlation between Shenyang Huitian Thermal and Eastern Communications Co, you can compare the effects of market volatilities on Shenyang Huitian and Eastern Communications 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 Eastern Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Eastern Communications.
Diversification Opportunities for Shenyang Huitian and Eastern Communications
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenyang and Eastern is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and Eastern Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Communications 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 Eastern Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Communications has no effect on the direction of Shenyang Huitian i.e., Shenyang Huitian and Eastern Communications go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Eastern Communications
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to generate 1.69 times more return on investment than Eastern Communications. However, Shenyang Huitian is 1.69 times more volatile than Eastern Communications Co. It trades about 0.12 of its potential returns per unit of risk. Eastern Communications Co is currently generating about 0.01 per unit of risk. If you would invest 323.00 in Shenyang Huitian Thermal on August 25, 2024 and sell it today you would earn a total of 32.00 from holding Shenyang Huitian Thermal or generate 9.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. Eastern Communications Co
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Eastern Communications |
Shenyang Huitian and Eastern Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Eastern Communications
The main advantage of trading using opposite Shenyang Huitian and Eastern Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian position performs unexpectedly, Eastern Communications 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 Eastern Communications will offset losses from the drop in Eastern Communications' long position.| Shenyang Huitian vs. Ningbo MedicalSystem Biotechnology | Shenyang Huitian vs. Huatian Hotel Group | Shenyang Huitian vs. HeNan Splendor Science | Shenyang Huitian vs. Agricultural Bank of |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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