Correlation Between Sinosteel Engineering and Hua Xia
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By analyzing existing cross correlation between Sinosteel Engineering and and Hua Xia Bank, you can compare the effects of market volatilities on Sinosteel Engineering and Hua Xia 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 Sinosteel Engineering with a short position of Hua Xia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinosteel Engineering and Hua Xia.
Diversification Opportunities for Sinosteel Engineering and Hua Xia
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sinosteel and Hua is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Sinosteel Engineering and and Hua Xia Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hua Xia Bank and Sinosteel Engineering 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 Sinosteel Engineering and are associated (or correlated) with Hua Xia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hua Xia Bank has no effect on the direction of Sinosteel Engineering i.e., Sinosteel Engineering and Hua Xia go up and down completely randomly.
Pair Corralation between Sinosteel Engineering and Hua Xia
Assuming the 90 days trading horizon Sinosteel Engineering is expected to generate 1.41 times less return on investment than Hua Xia. In addition to that, Sinosteel Engineering is 1.95 times more volatile than Hua Xia Bank. It trades about 0.03 of its total potential returns per unit of risk. Hua Xia Bank is currently generating about 0.08 per unit of volatility. If you would invest 478.00 in Hua Xia Bank on September 14, 2024 and sell it today you would earn a total of 298.00 from holding Hua Xia Bank or generate 62.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinosteel Engineering and vs. Hua Xia Bank
Performance |
| Timeline |
| Sinosteel Engineering and |
| Hua Xia Bank |
Sinosteel Engineering and Hua Xia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinosteel Engineering and Hua Xia
The main advantage of trading using opposite Sinosteel Engineering and Hua Xia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinosteel Engineering position performs unexpectedly, Hua Xia 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 Hua Xia will offset losses from the drop in Hua Xia's long position.| Sinosteel Engineering vs. Ming Yang Smart | Sinosteel Engineering vs. 159681 | Sinosteel Engineering vs. 159005 | Sinosteel Engineering vs. Loctek Ergonomic Technology |
| Hua Xia vs. Dymatic Chemicals | Hua Xia vs. Bomesc Offshore Engineering | Hua Xia vs. North Huajin Chemical | Hua Xia vs. Changjiang Publishing Media |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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