Correlation Between Henan Shuanghui and Luenmei Quantum
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By analyzing existing cross correlation between Henan Shuanghui Investment and Luenmei Quantum Co, you can compare the effects of market volatilities on Henan Shuanghui and Luenmei Quantum 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 Luenmei Quantum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and Luenmei Quantum.
Diversification Opportunities for Henan Shuanghui and Luenmei Quantum
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Henan and Luenmei is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment and Luenmei Quantum Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luenmei Quantum 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 Luenmei Quantum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luenmei Quantum has no effect on the direction of Henan Shuanghui i.e., Henan Shuanghui and Luenmei Quantum go up and down completely randomly.
Pair Corralation between Henan Shuanghui and Luenmei Quantum
Assuming the 90 days trading horizon Henan Shuanghui Investment is expected to generate 0.75 times more return on investment than Luenmei Quantum. However, Henan Shuanghui Investment is 1.33 times less risky than Luenmei Quantum. It trades about 0.02 of its potential returns per unit of risk. Luenmei Quantum Co is currently generating about 0.0 per unit of risk. If you would invest 2,246 in Henan Shuanghui Investment on August 28, 2024 and sell it today you would earn a total of 170.00 from holding Henan Shuanghui Investment or generate 7.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.71% |
| Values | Daily Returns |
Henan Shuanghui Investment vs. Luenmei Quantum Co
Performance |
| Timeline |
| Henan Shuanghui Inve |
| Luenmei Quantum |
Henan Shuanghui and Luenmei Quantum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Shuanghui and Luenmei Quantum
The main advantage of trading using opposite Henan Shuanghui and Luenmei Quantum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui position performs unexpectedly, Luenmei Quantum 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 Luenmei Quantum will offset losses from the drop in Luenmei Quantum's long position.| Henan Shuanghui vs. China Petroleum Chemical | Henan Shuanghui vs. PetroChina Co Ltd | Henan Shuanghui vs. China State Construction | Henan Shuanghui vs. China Railway Group |
| Luenmei Quantum vs. Holitech Technology Co | Luenmei Quantum vs. Soyea Technology Co | Luenmei Quantum vs. Shengda Mining Co | Luenmei Quantum vs. Pengxin International Mining |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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