Correlation Between Henan Shuanghui and Long Yuan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Henan Shuanghui Investment and Long Yuan Construction, you can compare the effects of market volatilities on Henan Shuanghui and Long Yuan 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 Long Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and Long Yuan.
Diversification Opportunities for Henan Shuanghui and Long Yuan
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Henan and Long is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment and Long Yuan Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Long Yuan Construction 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 Long Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Long Yuan Construction has no effect on the direction of Henan Shuanghui i.e., Henan Shuanghui and Long Yuan go up and down completely randomly.
Pair Corralation between Henan Shuanghui and Long Yuan
Assuming the 90 days trading horizon Henan Shuanghui is expected to generate 4.62 times less return on investment than Long Yuan. But when comparing it to its historical volatility, Henan Shuanghui Investment is 1.63 times less risky than Long Yuan. It trades about 0.07 of its potential returns per unit of risk. Long Yuan Construction is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 340.00 in Long Yuan Construction on November 4, 2024 and sell it today you would earn a total of 26.00 from holding Long Yuan Construction or generate 7.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henan Shuanghui Investment vs. Long Yuan Construction
Performance |
| Timeline |
| Henan Shuanghui Inve |
| Long Yuan Construction |
Henan Shuanghui and Long Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Shuanghui and Long Yuan
The main advantage of trading using opposite Henan Shuanghui and Long Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui position performs unexpectedly, Long Yuan 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 Long Yuan will offset losses from the drop in Long Yuan's long position.| Henan Shuanghui vs. Shenzhen Noposion Agrochemicals | Henan Shuanghui vs. Ningxia Younglight Chemicals | Henan Shuanghui vs. Ningbo Kangqiang Electronics | Henan Shuanghui vs. Techshine Electronics Co |
| Long Yuan vs. Tongyu Communication | Long Yuan vs. HaiXin Foods Co | Long Yuan vs. V V Food | Long Yuan vs. Yan Tai Shuang |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |