Correlation Between Henan Shuanghui and Shenzhen
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By analyzing existing cross correlation between Henan Shuanghui Investment and Shenzhen AV Display Co, you can compare the effects of market volatilities on Henan Shuanghui and Shenzhen 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 Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and Shenzhen.
Diversification Opportunities for Henan Shuanghui and Shenzhen
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Henan and Shenzhen is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment and Shenzhen AV Display Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen AV Display 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 Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen AV Display has no effect on the direction of Henan Shuanghui i.e., Henan Shuanghui and Shenzhen go up and down completely randomly.
Pair Corralation between Henan Shuanghui and Shenzhen
Assuming the 90 days trading horizon Henan Shuanghui Investment is expected to generate 0.31 times more return on investment than Shenzhen. However, Henan Shuanghui Investment is 3.21 times less risky than Shenzhen. It trades about -0.2 of its potential returns per unit of risk. Shenzhen AV Display Co is currently generating about -0.18 per unit of risk. If you would invest 2,610 in Henan Shuanghui Investment on October 25, 2024 and sell it today you would lose (109.00) from holding Henan Shuanghui Investment or give up 4.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henan Shuanghui Investment vs. Shenzhen AV Display Co
Performance |
| Timeline |
| Henan Shuanghui Inve |
| Shenzhen AV Display |
Henan Shuanghui and Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Shuanghui and Shenzhen
The main advantage of trading using opposite Henan Shuanghui and Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui position performs unexpectedly, Shenzhen 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 Shenzhen will offset losses from the drop in Shenzhen's long position.| Henan Shuanghui vs. XiaMen HongXin Electron tech | Henan Shuanghui vs. Dhc Software Co | Henan Shuanghui vs. Montage Technology Co | Henan Shuanghui vs. Changchun UP Optotech |
| Shenzhen vs. Digiwin Software Co | Shenzhen vs. Uxi Unicomp Technology | Shenzhen vs. Wondershare Technology Co | Shenzhen vs. Soyea Technology 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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