Correlation Between Henan Shuanghui and Guangzhou Shiyuan
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By analyzing existing cross correlation between Henan Shuanghui Investment and Guangzhou Shiyuan Electronic, you can compare the effects of market volatilities on Henan Shuanghui and Guangzhou Shiyuan 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 Guangzhou Shiyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and Guangzhou Shiyuan.
Diversification Opportunities for Henan Shuanghui and Guangzhou Shiyuan
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Henan and Guangzhou is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment and Guangzhou Shiyuan Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Shiyuan 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 Guangzhou Shiyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Shiyuan has no effect on the direction of Henan Shuanghui i.e., Henan Shuanghui and Guangzhou Shiyuan go up and down completely randomly.
Pair Corralation between Henan Shuanghui and Guangzhou Shiyuan
Assuming the 90 days trading horizon Henan Shuanghui is expected to generate 2.42 times less return on investment than Guangzhou Shiyuan. But when comparing it to its historical volatility, Henan Shuanghui Investment is 2.37 times less risky than Guangzhou Shiyuan. It trades about 0.06 of its potential returns per unit of risk. Guangzhou Shiyuan Electronic is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,705 in Guangzhou Shiyuan Electronic on September 13, 2024 and sell it today you would earn a total of 221.00 from holding Guangzhou Shiyuan Electronic or generate 5.96% 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. Guangzhou Shiyuan Electronic
Performance |
| Timeline |
| Henan Shuanghui Inve |
| Guangzhou Shiyuan |
Henan Shuanghui and Guangzhou Shiyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Shuanghui and Guangzhou Shiyuan
The main advantage of trading using opposite Henan Shuanghui and Guangzhou Shiyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui position performs unexpectedly, Guangzhou Shiyuan 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 Guangzhou Shiyuan will offset losses from the drop in Guangzhou Shiyuan's long position.| Henan Shuanghui vs. Nanjing Putian Telecommunications | Henan Shuanghui vs. Tianjin Realty Development | Henan Shuanghui vs. Kangyue Technology Co | Henan Shuanghui vs. Shenzhen Hifuture Electric |
| Guangzhou Shiyuan vs. Henan Shuanghui Investment | Guangzhou Shiyuan vs. Zhejiang Construction Investment | Guangzhou Shiyuan vs. Hunan Investment Group | Guangzhou Shiyuan vs. China Asset Management |
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 CEOs Directory module to screen CEOs from public companies around the world.
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