Correlation Between Henan Shuanghui and China Enterprise
Specify exactly 2 symbols:
By analyzing existing cross correlation between Henan Shuanghui Investment and China Enterprise Co, you can compare the effects of market volatilities on Henan Shuanghui and China Enterprise 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 China Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and China Enterprise.
Diversification Opportunities for Henan Shuanghui and China Enterprise
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Henan and China is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment and China Enterprise Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Enterprise 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 China Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Enterprise has no effect on the direction of Henan Shuanghui i.e., Henan Shuanghui and China Enterprise go up and down completely randomly.
Pair Corralation between Henan Shuanghui and China Enterprise
Assuming the 90 days trading horizon Henan Shuanghui Investment is expected to generate 0.97 times more return on investment than China Enterprise. However, Henan Shuanghui Investment is 1.03 times less risky than China Enterprise. It trades about 0.12 of its potential returns per unit of risk. China Enterprise Co is currently generating about -0.02 per unit of risk. If you would invest 2,567 in Henan Shuanghui Investment on November 7, 2024 and sell it today you would earn a total of 69.00 from holding Henan Shuanghui Investment or generate 2.69% 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. China Enterprise Co
Performance |
| Timeline |
| Henan Shuanghui Inve |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| China Enterprise |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Henan Shuanghui and China Enterprise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Shuanghui and China Enterprise
The main advantage of trading using opposite Henan Shuanghui and China Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui position performs unexpectedly, China Enterprise 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 China Enterprise will offset losses from the drop in China Enterprise's long position.The idea behind Henan Shuanghui Investment and China Enterprise Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |