Correlation Between Henan Shuanghui and Fujian Wanchen
Specify exactly 2 symbols:
By analyzing existing cross correlation between Henan Shuanghui Investment and Fujian Wanchen Biotechnology, you can compare the effects of market volatilities on Henan Shuanghui and Fujian Wanchen 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 Fujian Wanchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and Fujian Wanchen.
Diversification Opportunities for Henan Shuanghui and Fujian Wanchen
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Henan and Fujian is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment and Fujian Wanchen Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Wanchen Biote 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 Fujian Wanchen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Wanchen Biote has no effect on the direction of Henan Shuanghui i.e., Henan Shuanghui and Fujian Wanchen go up and down completely randomly.
Pair Corralation between Henan Shuanghui and Fujian Wanchen
Assuming the 90 days trading horizon Henan Shuanghui is expected to generate 10.32 times less return on investment than Fujian Wanchen. But when comparing it to its historical volatility, Henan Shuanghui Investment is 2.6 times less risky than Fujian Wanchen. It trades about 0.12 of its potential returns per unit of risk. Fujian Wanchen Biotechnology is currently generating about 0.47 of returns per unit of risk over similar time horizon. If you would invest 7,789 in Fujian Wanchen Biotechnology on November 5, 2024 and sell it today you would earn a total of 2,491 from holding Fujian Wanchen Biotechnology or generate 31.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henan Shuanghui Investment vs. Fujian Wanchen Biotechnology
Performance |
| Timeline |
| Henan Shuanghui Inve |
| Fujian Wanchen Biote |
Henan Shuanghui and Fujian Wanchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Shuanghui and Fujian Wanchen
The main advantage of trading using opposite Henan Shuanghui and Fujian Wanchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui position performs unexpectedly, Fujian Wanchen 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 Fujian Wanchen will offset losses from the drop in Fujian Wanchen's long position.| Henan Shuanghui vs. Qingdao Choho Industrial | Henan Shuanghui vs. Jiangsu Yanghe Brewery | Henan Shuanghui vs. Citic Offshore Helicopter | Henan Shuanghui vs. Chongqing Brewery Co |
| Fujian Wanchen vs. Beijing Mainstreets Investment | Fujian Wanchen vs. Anhui Jianghuai Automobile | Fujian Wanchen vs. Zoje Resources Investment | Fujian Wanchen vs. Zhejiang Construction 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |