Correlation Between Xiandai Investment and Henan Shuanghui
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By analyzing existing cross correlation between Xiandai Investment Co and Henan Shuanghui Investment, you can compare the effects of market volatilities on Xiandai Investment and Henan Shuanghui 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 Xiandai Investment with a short position of Henan Shuanghui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiandai Investment and Henan Shuanghui.
Diversification Opportunities for Xiandai Investment and Henan Shuanghui
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Xiandai and Henan is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Xiandai Investment Co and Henan Shuanghui Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Shuanghui Inve and Xiandai Investment 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 Xiandai Investment Co are associated (or correlated) with Henan Shuanghui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Shuanghui Inve has no effect on the direction of Xiandai Investment i.e., Xiandai Investment and Henan Shuanghui go up and down completely randomly.
Pair Corralation between Xiandai Investment and Henan Shuanghui
Assuming the 90 days trading horizon Xiandai Investment is expected to generate 2.09 times less return on investment than Henan Shuanghui. But when comparing it to its historical volatility, Xiandai Investment Co is 1.32 times less risky than Henan Shuanghui. It trades about 0.04 of its potential returns per unit of risk. Henan Shuanghui Investment is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,596 in Henan Shuanghui Investment on November 4, 2024 and sell it today you would earn a total of 40.00 from holding Henan Shuanghui Investment or generate 1.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiandai Investment Co vs. Henan Shuanghui Investment
Performance |
| Timeline |
| Xiandai Investment |
| Henan Shuanghui Inve |
Xiandai Investment and Henan Shuanghui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiandai Investment and Henan Shuanghui
The main advantage of trading using opposite Xiandai Investment and Henan Shuanghui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiandai Investment position performs unexpectedly, Henan Shuanghui 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 Henan Shuanghui will offset losses from the drop in Henan Shuanghui's long position.| Xiandai Investment vs. BTG Hotels Group | Xiandai Investment vs. Guangzhou Dongfang Hotel | Xiandai Investment vs. Guangxi Wuzhou Communications | Xiandai Investment vs. Jinling Hotel Corp |
| Henan Shuanghui vs. Shenzhen Noposion Agrochemicals | Henan Shuanghui vs. Ningxia Younglight Chemicals | Henan Shuanghui vs. Ningbo Kangqiang Electronics | Henan Shuanghui vs. Techshine Electronics Co |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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