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
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shenzhen and Shenyang is 0.02. 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 is expected to generate 1.07 times less return on investment than Shenyang Huitian. But when comparing it to its historical volatility, Shenzhen Hifuture Electric is 1.36 times less risky than Shenyang Huitian. It trades about 0.18 of its potential returns per unit of risk. Shenyang Huitian Thermal is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 291.00 in Shenyang Huitian Thermal on August 25, 2024 and sell it today you would earn a total of 64.00 from holding Shenyang Huitian Thermal or generate 21.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| 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. Beijing Mainstreets Investment | Shenzhen Hifuture vs. Hainan Haiqi Transportation | Shenzhen Hifuture vs. Dazhong Transportation Group | Shenzhen Hifuture vs. Shuhua Sports Co |
| Shenyang Huitian vs. Ningbo MedicalSystem Biotechnology | Shenyang Huitian vs. Huatian Hotel Group | Shenyang Huitian vs. HeNan Splendor Science | Shenyang Huitian vs. Agricultural Bank 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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