Correlation Between Henan Shuanghui and Shandong Longquan
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By analyzing existing cross correlation between Henan Shuanghui Investment and Shandong Longquan Pipeline, you can compare the effects of market volatilities on Henan Shuanghui and Shandong Longquan 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 Shandong Longquan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and Shandong Longquan.
Diversification Opportunities for Henan Shuanghui and Shandong Longquan
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Henan and Shandong is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment and Shandong Longquan Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Longquan 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 Shandong Longquan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Longquan has no effect on the direction of Henan Shuanghui i.e., Henan Shuanghui and Shandong Longquan go up and down completely randomly.
Pair Corralation between Henan Shuanghui and Shandong Longquan
Assuming the 90 days trading horizon Henan Shuanghui is expected to generate 2.06 times less return on investment than Shandong Longquan. But when comparing it to its historical volatility, Henan Shuanghui Investment is 2.25 times less risky than Shandong Longquan. It trades about 0.02 of its potential returns per unit of risk. Shandong Longquan Pipeline is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 457.00 in Shandong Longquan Pipeline on September 3, 2024 and sell it today you would earn a total of 19.00 from holding Shandong Longquan Pipeline or generate 4.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henan Shuanghui Investment vs. Shandong Longquan Pipeline
Performance |
| Timeline |
| Henan Shuanghui Inve |
| Shandong Longquan |
Henan Shuanghui and Shandong Longquan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Shuanghui and Shandong Longquan
The main advantage of trading using opposite Henan Shuanghui and Shandong Longquan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui position performs unexpectedly, Shandong Longquan 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 Shandong Longquan will offset losses from the drop in Shandong Longquan's long position.| Henan Shuanghui vs. Markor International Home | Henan Shuanghui vs. Harbin Hatou Investment | Henan Shuanghui vs. Vohringer Home Technology | Henan Shuanghui vs. Chengdu Xingrong Investment |
| Shandong Longquan vs. Hunan Investment Group | Shandong Longquan vs. Xiandai Investment Co | Shandong Longquan vs. Ningbo Ligong Online | Shandong Longquan vs. Bank of Suzhou |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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