Correlation Between Shenzhen Hifuture and Shenyang Huitian
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Shenyang Huitian Thermal, you can compare the effects of market volatilities on Shenzhen Hifuture and Shenyang Huitian 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 Hifuture with a short position of Shenyang Huitian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Shenyang Huitian.
Diversification Opportunities for Shenzhen Hifuture and Shenyang Huitian
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Shenyang is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Shenyang Huitian Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Huitian Thermal and Shenzhen Hifuture 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 Hifuture Electric are associated (or correlated) with Shenyang Huitian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Huitian Thermal has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and Shenyang Huitian go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Shenyang Huitian
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to under-perform the Shenyang Huitian. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Hifuture Electric is 1.07 times less risky than Shenyang Huitian. The stock trades about -0.01 of its potential returns per unit of risk. The Shenyang Huitian Thermal is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 287.00 in Shenyang Huitian Thermal on November 2, 2024 and sell it today you would earn a total of 50.00 from holding Shenyang Huitian Thermal or generate 17.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.98% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. Shenyang Huitian Thermal
Performance |
| Timeline |
| Shenzhen Hifuture |
| Shenyang Huitian Thermal |
Shenzhen Hifuture and Shenyang Huitian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Shenyang Huitian
The main advantage of trading using opposite Shenzhen Hifuture and Shenyang Huitian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, Shenyang Huitian 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 Shenyang Huitian will offset losses from the drop in Shenyang Huitian's long position.| Shenzhen Hifuture vs. Tjk Machinery Tianjin | Shenzhen Hifuture vs. Anhui Huilong Agricultural | Shenzhen Hifuture vs. Senci Electric Machinery | Shenzhen Hifuture vs. Sunny Loan Top |
| Shenyang Huitian vs. Rising Nonferrous Metals | Shenyang Huitian vs. Semiconductor Manufacturing Intl | Shenyang Huitian vs. Ye Chiu Metal | Shenyang Huitian vs. Aluminum Corp of |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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