Correlation Between Henan Shuanghui and Xinjiang Tianrun
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By analyzing existing cross correlation between Henan Shuanghui Investment and Xinjiang Tianrun Dairy, you can compare the effects of market volatilities on Henan Shuanghui and Xinjiang Tianrun 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 Xinjiang Tianrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and Xinjiang Tianrun.
Diversification Opportunities for Henan Shuanghui and Xinjiang Tianrun
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Henan and Xinjiang is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment and Xinjiang Tianrun Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianrun Dairy 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 Xinjiang Tianrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianrun Dairy has no effect on the direction of Henan Shuanghui i.e., Henan Shuanghui and Xinjiang Tianrun go up and down completely randomly.
Pair Corralation between Henan Shuanghui and Xinjiang Tianrun
Assuming the 90 days trading horizon Henan Shuanghui Investment is expected to generate 0.34 times more return on investment than Xinjiang Tianrun. However, Henan Shuanghui Investment is 2.95 times less risky than Xinjiang Tianrun. It trades about -0.26 of its potential returns per unit of risk. Xinjiang Tianrun Dairy is currently generating about -0.39 per unit of risk. If you would invest 2,612 in Henan Shuanghui Investment on October 16, 2024 and sell it today you would lose (122.00) from holding Henan Shuanghui Investment or give up 4.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henan Shuanghui Investment vs. Xinjiang Tianrun Dairy
Performance |
| Timeline |
| Henan Shuanghui Inve |
| Xinjiang Tianrun Dairy |
Henan Shuanghui and Xinjiang Tianrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Shuanghui and Xinjiang Tianrun
The main advantage of trading using opposite Henan Shuanghui and Xinjiang Tianrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui position performs unexpectedly, Xinjiang Tianrun 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 Xinjiang Tianrun will offset losses from the drop in Xinjiang Tianrun's long position.| Henan Shuanghui vs. Unisplendour Corp | Henan Shuanghui vs. Songz Automobile Air | Henan Shuanghui vs. Qilu Bank Co | Henan Shuanghui vs. Changchun Engley Automobile |
| Xinjiang Tianrun vs. Henan Shuanghui Investment | Xinjiang Tianrun vs. Hunan Investment Group | Xinjiang Tianrun vs. Harbin Hatou Investment | Xinjiang Tianrun vs. Shandong Polymer Biochemicals |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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