Correlation Between Henan Shuanghui and Shenzhen Coship
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By analyzing existing cross correlation between Henan Shuanghui Investment and Shenzhen Coship Electronics, you can compare the effects of market volatilities on Henan Shuanghui and Shenzhen Coship 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 Henan Shuanghui with a short position of Shenzhen Coship. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and Shenzhen Coship.
Diversification Opportunities for Henan Shuanghui and Shenzhen Coship
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Henan and Shenzhen is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment and Shenzhen Coship Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Coship Elec and Henan Shuanghui 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 Henan Shuanghui Investment are associated (or correlated) with Shenzhen Coship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Coship Elec has no effect on the direction of Henan Shuanghui i.e., Henan Shuanghui and Shenzhen Coship go up and down completely randomly.
Pair Corralation between Henan Shuanghui and Shenzhen Coship
Assuming the 90 days trading horizon Henan Shuanghui Investment is expected to generate 0.31 times more return on investment than Shenzhen Coship. However, Henan Shuanghui Investment is 3.18 times less risky than Shenzhen Coship. It trades about -0.14 of its potential returns per unit of risk. Shenzhen Coship Electronics is currently generating about -0.12 per unit of risk. If you would invest 2,623 in Henan Shuanghui Investment on October 28, 2024 and sell it today you would lose (80.00) from holding Henan Shuanghui Investment or give up 3.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henan Shuanghui Investment vs. Shenzhen Coship Electronics
Performance |
| Timeline |
| Henan Shuanghui Inve |
| Shenzhen Coship Elec |
Henan Shuanghui and Shenzhen Coship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Shuanghui and Shenzhen Coship
The main advantage of trading using opposite Henan Shuanghui and Shenzhen Coship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui position performs unexpectedly, Shenzhen Coship 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 Shenzhen Coship will offset losses from the drop in Shenzhen Coship's long position.| Henan Shuanghui vs. Beijing Jiaman Dress | Henan Shuanghui vs. Xinhua Winshare Publishing | Henan Shuanghui vs. Shandong Publishing Media | Henan Shuanghui vs. Guocheng Mining Co |
| Shenzhen Coship vs. Zhongyin Babi Food | Shenzhen Coship vs. Hainan Haiqi Transportation | Shenzhen Coship vs. Shenzhen Urban Transport | Shenzhen Coship vs. Dazhong Transportation Group |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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