Correlation Between Shenzhen Clou and Shenzhen Hifuture
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By analyzing existing cross correlation between Shenzhen Clou Electronics and Shenzhen Hifuture Electric, you can compare the effects of market volatilities on Shenzhen Clou and Shenzhen Hifuture 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 Shenzhen Hifuture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Clou and Shenzhen Hifuture.
Diversification Opportunities for Shenzhen Clou and Shenzhen Hifuture
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Shenzhen is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Clou Electronics and Shenzhen Hifuture Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Hifuture 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 Shenzhen Hifuture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Hifuture has no effect on the direction of Shenzhen Clou i.e., Shenzhen Clou and Shenzhen Hifuture go up and down completely randomly.
Pair Corralation between Shenzhen Clou and Shenzhen Hifuture
Assuming the 90 days trading horizon Shenzhen Clou Electronics is expected to generate 1.87 times more return on investment than Shenzhen Hifuture. However, Shenzhen Clou is 1.87 times more volatile than Shenzhen Hifuture Electric. It trades about 0.2 of its potential returns per unit of risk. Shenzhen Hifuture Electric is currently generating about -0.21 per unit of risk. If you would invest 408.00 in Shenzhen Clou Electronics on December 4, 2024 and sell it today you would earn a total of 51.00 from holding Shenzhen Clou Electronics or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Clou Electronics vs. Shenzhen Hifuture Electric
Performance |
| Timeline |
| Shenzhen Clou Electronics |
| Shenzhen Hifuture |
Shenzhen Clou and Shenzhen Hifuture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Clou and Shenzhen Hifuture
The main advantage of trading using opposite Shenzhen Clou and Shenzhen Hifuture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Clou position performs unexpectedly, Shenzhen Hifuture 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 Shenzhen Hifuture will offset losses from the drop in Shenzhen Hifuture's long position.| Shenzhen Clou vs. Digiwin Software Co | Shenzhen Clou vs. Fujian Boss Software | Shenzhen Clou vs. Pengxin International Mining | Shenzhen Clou vs. North Copper Shanxi |
| Shenzhen Hifuture vs. Jiangsu Jinling Sports | Shenzhen Hifuture vs. Heilongjiang Transport Development | Shenzhen Hifuture vs. Shenzhen SDG Information | Shenzhen Hifuture vs. Longmaster Information Tech |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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