Correlation Between Henan Shuanghui and Guangdong Skychem
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By analyzing existing cross correlation between Henan Shuanghui Investment and Guangdong Skychem Technology, you can compare the effects of market volatilities on Henan Shuanghui and Guangdong Skychem 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 Guangdong Skychem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and Guangdong Skychem.
Diversification Opportunities for Henan Shuanghui and Guangdong Skychem
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Henan and Guangdong is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment and Guangdong Skychem Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Skychem 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 Guangdong Skychem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Skychem has no effect on the direction of Henan Shuanghui i.e., Henan Shuanghui and Guangdong Skychem go up and down completely randomly.
Pair Corralation between Henan Shuanghui and Guangdong Skychem
Assuming the 90 days trading horizon Henan Shuanghui is expected to generate 7.25 times less return on investment than Guangdong Skychem. But when comparing it to its historical volatility, Henan Shuanghui Investment is 3.46 times less risky than Guangdong Skychem. It trades about 0.02 of its potential returns per unit of risk. Guangdong Skychem Technology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 5,452 in Guangdong Skychem Technology on October 16, 2024 and sell it today you would earn a total of 2,568 from holding Guangdong Skychem Technology or generate 47.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 77.62% |
| Values | Daily Returns |
Henan Shuanghui Investment vs. Guangdong Skychem Technology
Performance |
| Timeline |
| Henan Shuanghui Inve |
| Guangdong Skychem |
Henan Shuanghui and Guangdong Skychem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Shuanghui and Guangdong Skychem
The main advantage of trading using opposite Henan Shuanghui and Guangdong Skychem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui position performs unexpectedly, Guangdong Skychem 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 Guangdong Skychem will offset losses from the drop in Guangdong Skychem's long position.| Henan Shuanghui vs. Unisplendour Corp | Henan Shuanghui vs. Songz Automobile Air | Henan Shuanghui vs. Qilu Bank Co | Henan Shuanghui vs. Changchun Engley Automobile |
| Guangdong Skychem vs. Kunwu Jiuding Investment | Guangdong Skychem vs. Xiandai Investment Co | Guangdong Skychem vs. Hubei Geoway Investment | Guangdong Skychem vs. Henan Shuanghui 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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