Correlation Between Henan Shuanghui and Jiujiang Shanshui
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By analyzing existing cross correlation between Henan Shuanghui Investment and Jiujiang Shanshui Technology, you can compare the effects of market volatilities on Henan Shuanghui and Jiujiang Shanshui 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 Jiujiang Shanshui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and Jiujiang Shanshui.
Diversification Opportunities for Henan Shuanghui and Jiujiang Shanshui
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Henan and Jiujiang is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment and Jiujiang Shanshui Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiujiang Shanshui 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 Jiujiang Shanshui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiujiang Shanshui has no effect on the direction of Henan Shuanghui i.e., Henan Shuanghui and Jiujiang Shanshui go up and down completely randomly.
Pair Corralation between Henan Shuanghui and Jiujiang Shanshui
Assuming the 90 days trading horizon Henan Shuanghui Investment is expected to generate 0.56 times more return on investment than Jiujiang Shanshui. However, Henan Shuanghui Investment is 1.78 times less risky than Jiujiang Shanshui. It trades about 0.03 of its potential returns per unit of risk. Jiujiang Shanshui 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henan Shuanghui Investment vs. Jiujiang Shanshui Technology
Performance |
| Timeline |
| Henan Shuanghui Inve |
| Jiujiang Shanshui |
Henan Shuanghui and Jiujiang Shanshui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Shuanghui and Jiujiang Shanshui
The main advantage of trading using opposite Henan Shuanghui and Jiujiang Shanshui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui position performs unexpectedly, Jiujiang Shanshui 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 Jiujiang Shanshui will offset losses from the drop in Jiujiang Shanshui'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 |
| Jiujiang Shanshui vs. China Eastern Airlines | Jiujiang Shanshui vs. Soyea Technology Co | Jiujiang Shanshui vs. MayAir Technology Co | Jiujiang Shanshui vs. Holitech 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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