Correlation Between Shenzhen Hifuture and Henan Shuanghui
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Henan Shuanghui Investment, you can compare the effects of market volatilities on Shenzhen Hifuture and Henan Shuanghui 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 Henan Shuanghui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Henan Shuanghui.
Diversification Opportunities for Shenzhen Hifuture and Henan Shuanghui
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shenzhen and Henan is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Henan Shuanghui Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Shuanghui Inve 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 Henan Shuanghui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Shuanghui Inve has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and Henan Shuanghui go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Henan Shuanghui
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to under-perform the Henan Shuanghui. In addition to that, Shenzhen Hifuture is 2.52 times more volatile than Henan Shuanghui Investment. It trades about -0.02 of its total potential returns per unit of risk. Henan Shuanghui Investment is currently generating about 0.03 per unit of volatility. If you would invest 2,413 in Henan Shuanghui Investment on September 14, 2024 and sell it today you would earn a total of 186.00 from holding Henan Shuanghui Investment or generate 7.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.58% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. Henan Shuanghui Investment
Performance |
| Timeline |
| Shenzhen Hifuture |
| Henan Shuanghui Inve |
Shenzhen Hifuture and Henan Shuanghui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Henan Shuanghui
The main advantage of trading using opposite Shenzhen Hifuture and Henan Shuanghui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, Henan Shuanghui 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 Henan Shuanghui will offset losses from the drop in Henan Shuanghui's long position.| Shenzhen Hifuture vs. Agricultural Bank of | Shenzhen Hifuture vs. Industrial and Commercial | Shenzhen Hifuture vs. Bank of China | Shenzhen Hifuture vs. PetroChina Co Ltd |
| Henan Shuanghui vs. Nanjing Putian Telecommunications | Henan Shuanghui vs. Tianjin Realty Development | Henan Shuanghui vs. Kangyue Technology Co | Henan Shuanghui vs. Shenzhen Hifuture Electric |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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