Correlation Between Henan Shuanghui and Servyou Software
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By analyzing existing cross correlation between Henan Shuanghui Investment and Servyou Software Group, you can compare the effects of market volatilities on Henan Shuanghui and Servyou Software 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 Servyou Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and Servyou Software.
Diversification Opportunities for Henan Shuanghui and Servyou Software
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Henan and Servyou is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment and Servyou Software Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Servyou Software 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 Servyou Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Servyou Software has no effect on the direction of Henan Shuanghui i.e., Henan Shuanghui and Servyou Software go up and down completely randomly.
Pair Corralation between Henan Shuanghui and Servyou Software
Assuming the 90 days trading horizon Henan Shuanghui Investment is expected to generate 0.32 times more return on investment than Servyou Software. However, Henan Shuanghui Investment is 3.1 times less risky than Servyou Software. It trades about -0.2 of its potential returns per unit of risk. Servyou Software Group is currently generating about -0.21 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 (101.00) from holding Henan Shuanghui Investment or give up 3.87% 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. Servyou Software Group
Performance |
| Timeline |
| Henan Shuanghui Inve |
| Servyou Software |
Henan Shuanghui and Servyou Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Shuanghui and Servyou Software
The main advantage of trading using opposite Henan Shuanghui and Servyou Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui position performs unexpectedly, Servyou Software 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 Servyou Software will offset losses from the drop in Servyou Software's long position.| Henan Shuanghui vs. Western Metal Materials | Henan Shuanghui vs. Oppein Home Group | Henan Shuanghui vs. Jiaozuo Wanfang Aluminum | Henan Shuanghui vs. Zhejiang Yongjin Metal |
| Servyou Software vs. Henan Shuanghui Investment | Servyou Software vs. Nuode Investment Co | Servyou Software vs. Harbin Air Conditioning | Servyou Software vs. Citic Guoan Wine |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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