Correlation Between Henan Shuanghui and INKON Life
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By analyzing existing cross correlation between Henan Shuanghui Investment and INKON Life Technology, you can compare the effects of market volatilities on Henan Shuanghui and INKON Life 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 INKON Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and INKON Life.
Diversification Opportunities for Henan Shuanghui and INKON Life
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Henan and INKON is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment and INKON Life Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INKON Life Technology 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 INKON Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INKON Life Technology has no effect on the direction of Henan Shuanghui i.e., Henan Shuanghui and INKON Life go up and down completely randomly.
Pair Corralation between Henan Shuanghui and INKON Life
Assuming the 90 days trading horizon Henan Shuanghui Investment is expected to generate 0.46 times more return on investment than INKON Life. However, Henan Shuanghui Investment is 2.17 times less risky than INKON Life. It trades about 0.03 of its potential returns per unit of risk. INKON Life Technology is currently generating about -0.01 per unit of risk. If you would invest 2,271 in Henan Shuanghui Investment on October 12, 2024 and sell it today you would earn a total of 293.00 from holding Henan Shuanghui Investment or generate 12.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henan Shuanghui Investment vs. INKON Life Technology
Performance |
| Timeline |
| Henan Shuanghui Inve |
| INKON Life Technology |
Henan Shuanghui and INKON Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Shuanghui and INKON Life
The main advantage of trading using opposite Henan Shuanghui and INKON Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui position performs unexpectedly, INKON Life 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 INKON Life will offset losses from the drop in INKON Life's long position.| Henan Shuanghui vs. Konfoong Materials International | Henan Shuanghui vs. Suzhou Xingye Material | Henan Shuanghui vs. Sportsoul Co Ltd | Henan Shuanghui vs. Thinkingdom Media Group |
| INKON Life vs. Guangdong Shenglu Telecommunication | INKON Life vs. Threes Company Media | INKON Life vs. Fiberhome Telecommunication Technologies | INKON Life vs. Sunwave Communications Co |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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