Correlation Between Henan Shuanghui and Hainan Drinda
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By analyzing existing cross correlation between Henan Shuanghui Investment and Hainan Drinda Automotive, you can compare the effects of market volatilities on Henan Shuanghui and Hainan Drinda 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 Hainan Drinda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and Hainan Drinda.
Diversification Opportunities for Henan Shuanghui and Hainan Drinda
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Henan and Hainan is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment and Hainan Drinda Automotive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Drinda Automotive 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 Hainan Drinda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Drinda Automotive has no effect on the direction of Henan Shuanghui i.e., Henan Shuanghui and Hainan Drinda go up and down completely randomly.
Pair Corralation between Henan Shuanghui and Hainan Drinda
Assuming the 90 days trading horizon Henan Shuanghui is expected to generate 1.0 times less return on investment than Hainan Drinda. But when comparing it to its historical volatility, Henan Shuanghui Investment is 2.71 times less risky than Hainan Drinda. It trades about 0.03 of its potential returns per unit of risk. Hainan Drinda Automotive is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 6,938 in Hainan Drinda Automotive on September 14, 2024 and sell it today you would lose (643.00) from holding Hainan Drinda Automotive or give up 9.27% 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. Hainan Drinda Automotive
Performance |
| Timeline |
| Henan Shuanghui Inve |
| Hainan Drinda Automotive |
Henan Shuanghui and Hainan Drinda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Shuanghui and Hainan Drinda
The main advantage of trading using opposite Henan Shuanghui and Hainan Drinda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui position performs unexpectedly, Hainan Drinda 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 Hainan Drinda will offset losses from the drop in Hainan Drinda'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 |
| Hainan Drinda vs. Tieling Newcity Investment | Hainan Drinda vs. China Sports Industry | Hainan Drinda vs. Vanfund Urban Investment | Hainan Drinda vs. Beijing Mainstreets Investment |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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