Correlation Between Henan Shuanghui and Liuzhou Chemical
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By analyzing existing cross correlation between Henan Shuanghui Investment and Liuzhou Chemical Industry, you can compare the effects of market volatilities on Henan Shuanghui and Liuzhou Chemical 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 Liuzhou Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and Liuzhou Chemical.
Diversification Opportunities for Henan Shuanghui and Liuzhou Chemical
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Henan and Liuzhou is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment and Liuzhou Chemical Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liuzhou Chemical Industry 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 Liuzhou Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liuzhou Chemical Industry has no effect on the direction of Henan Shuanghui i.e., Henan Shuanghui and Liuzhou Chemical go up and down completely randomly.
Pair Corralation between Henan Shuanghui and Liuzhou Chemical
Assuming the 90 days trading horizon Henan Shuanghui Investment is expected to generate 0.45 times more return on investment than Liuzhou Chemical. However, Henan Shuanghui Investment is 2.2 times less risky than Liuzhou Chemical. It trades about 0.03 of its potential returns per unit of risk. Liuzhou Chemical Industry is currently generating about 0.0 per unit of risk. If you would invest 2,218 in Henan Shuanghui Investment on October 30, 2024 and sell it today you would earn a total of 418.00 from holding Henan Shuanghui Investment or generate 18.85% 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. Liuzhou Chemical Industry
Performance |
| Timeline |
| Henan Shuanghui Inve |
| Liuzhou Chemical Industry |
Henan Shuanghui and Liuzhou Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Shuanghui and Liuzhou Chemical
The main advantage of trading using opposite Henan Shuanghui and Liuzhou Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui position performs unexpectedly, Liuzhou Chemical 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 Liuzhou Chemical will offset losses from the drop in Liuzhou Chemical's long position.| Henan Shuanghui vs. Kweichow Moutai Co | Henan Shuanghui vs. Contemporary Amperex Technology | Henan Shuanghui vs. G bits Network Technology | Henan Shuanghui vs. Beijing Roborock Technology |
| Liuzhou Chemical vs. Ningbo Construction Co | Liuzhou Chemical vs. China Asset Management | Liuzhou Chemical vs. Hongrun Construction Group | Liuzhou Chemical vs. AVIC Fund Management |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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