Correlation Between Henan Shuanghui and HeBei Jinniu
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By analyzing existing cross correlation between Henan Shuanghui Investment and HeBei Jinniu Chemical, you can compare the effects of market volatilities on Henan Shuanghui and HeBei Jinniu 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 HeBei Jinniu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and HeBei Jinniu.
Diversification Opportunities for Henan Shuanghui and HeBei Jinniu
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Henan and HeBei is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment and HeBei Jinniu Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HeBei Jinniu Chemical 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 HeBei Jinniu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HeBei Jinniu Chemical has no effect on the direction of Henan Shuanghui i.e., Henan Shuanghui and HeBei Jinniu go up and down completely randomly.
Pair Corralation between Henan Shuanghui and HeBei Jinniu
Assuming the 90 days trading horizon Henan Shuanghui Investment is expected to under-perform the HeBei Jinniu. But the stock apears to be less risky and, when comparing its historical volatility, Henan Shuanghui Investment is 4.05 times less risky than HeBei Jinniu. The stock trades about -0.2 of its potential returns per unit of risk. The HeBei Jinniu Chemical is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 530.00 in HeBei Jinniu Chemical on October 18, 2024 and sell it today you would earn a total of 28.00 from holding HeBei Jinniu Chemical or generate 5.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henan Shuanghui Investment vs. HeBei Jinniu Chemical
Performance |
| Timeline |
| Henan Shuanghui Inve |
| HeBei Jinniu Chemical |
Henan Shuanghui and HeBei Jinniu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Shuanghui and HeBei Jinniu
The main advantage of trading using opposite Henan Shuanghui and HeBei Jinniu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui position performs unexpectedly, HeBei Jinniu 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 HeBei Jinniu will offset losses from the drop in HeBei Jinniu's long position.| Henan Shuanghui vs. Hunan TV Broadcast | Henan Shuanghui vs. Tongyu Communication | Henan Shuanghui vs. China Mobile Limited | Henan Shuanghui vs. Iat Automobile Technology |
| HeBei Jinniu vs. Chengdu Xingrong Investment | HeBei Jinniu vs. Chengdu Xinzhu RoadBridge | HeBei Jinniu vs. Hainan Haiqi Transportation | HeBei Jinniu vs. Jointo Energy 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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