Correlation Between Henan Shuanghui and Guangdong Qunxing
Specify exactly 2 symbols:
By analyzing existing cross correlation between Henan Shuanghui Investment and Guangdong Qunxing Toys, you can compare the effects of market volatilities on Henan Shuanghui and Guangdong Qunxing 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 Guangdong Qunxing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and Guangdong Qunxing.
Diversification Opportunities for Henan Shuanghui and Guangdong Qunxing
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Henan and Guangdong is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment and Guangdong Qunxing Toys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Qunxing Toys 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 Guangdong Qunxing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Qunxing Toys has no effect on the direction of Henan Shuanghui i.e., Henan Shuanghui and Guangdong Qunxing go up and down completely randomly.
Pair Corralation between Henan Shuanghui and Guangdong Qunxing
Assuming the 90 days trading horizon Henan Shuanghui Investment is expected to generate 0.21 times more return on investment than Guangdong Qunxing. However, Henan Shuanghui Investment is 4.72 times less risky than Guangdong Qunxing. It trades about -0.04 of its potential returns per unit of risk. Guangdong Qunxing Toys is currently generating about -0.14 per unit of risk. If you would invest 2,553 in Henan Shuanghui Investment on October 14, 2024 and sell it today you would lose (23.00) from holding Henan Shuanghui Investment or give up 0.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henan Shuanghui Investment vs. Guangdong Qunxing Toys
Performance |
| Timeline |
| Henan Shuanghui Inve |
| Guangdong Qunxing Toys |
Henan Shuanghui and Guangdong Qunxing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Shuanghui and Guangdong Qunxing
The main advantage of trading using opposite Henan Shuanghui and Guangdong Qunxing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui position performs unexpectedly, Guangdong Qunxing 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 Guangdong Qunxing will offset losses from the drop in Guangdong Qunxing's long position.| Henan Shuanghui vs. Harvest Fund Management | Henan Shuanghui vs. Great Sun Foods Co | Henan Shuanghui vs. Dalian Thermal Power | Henan Shuanghui vs. Guangdong Wens Foodstuff |
| Guangdong Qunxing vs. Giantec Semiconductor Corp | Guangdong Qunxing vs. Shanghai Phichem Material | Guangdong Qunxing vs. Union Semiconductor Co | Guangdong Qunxing vs. Konfoong Materials International |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |