Correlation Between Shenzhen Clou and Hunan Investment
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By analyzing existing cross correlation between Shenzhen Clou Electronics and Hunan Investment Group, you can compare the effects of market volatilities on Shenzhen Clou and Hunan Investment 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 Shenzhen Clou with a short position of Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Clou and Hunan Investment.
Diversification Opportunities for Shenzhen Clou and Hunan Investment
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Hunan is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Clou Electronics and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment and Shenzhen Clou 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 Shenzhen Clou Electronics are associated (or correlated) with Hunan Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Investment has no effect on the direction of Shenzhen Clou i.e., Shenzhen Clou and Hunan Investment go up and down completely randomly.
Pair Corralation between Shenzhen Clou and Hunan Investment
Assuming the 90 days trading horizon Shenzhen Clou Electronics is expected to generate 1.68 times more return on investment than Hunan Investment. However, Shenzhen Clou is 1.68 times more volatile than Hunan Investment Group. It trades about -0.2 of its potential returns per unit of risk. Hunan Investment Group is currently generating about -0.37 per unit of risk. If you would invest 499.00 in Shenzhen Clou Electronics on October 12, 2024 and sell it today you would lose (83.00) from holding Shenzhen Clou Electronics or give up 16.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Clou Electronics vs. Hunan Investment Group
Performance |
| Timeline |
| Shenzhen Clou Electronics |
| Hunan Investment |
Shenzhen Clou and Hunan Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Clou and Hunan Investment
The main advantage of trading using opposite Shenzhen Clou and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Clou position performs unexpectedly, Hunan Investment 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 Hunan Investment will offset losses from the drop in Hunan Investment's long position.| Shenzhen Clou vs. Sunny Loan Top | Shenzhen Clou vs. Juneyao Airlines | Shenzhen Clou vs. Ningbo MedicalSystem Biotechnology | Shenzhen Clou vs. Beijing Jiaman Dress |
| Hunan Investment vs. Techshine Electronics Co | Hunan Investment vs. Leyard Optoelectronic | Hunan Investment vs. Shenzhen Clou Electronics | Hunan Investment vs. Songz Automobile Air |
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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