Correlation Between Shenzhen Hifuture and Wangneng Environment
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Wangneng Environment Co, you can compare the effects of market volatilities on Shenzhen Hifuture and Wangneng Environment 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 Wangneng Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Wangneng Environment.
Diversification Opportunities for Shenzhen Hifuture and Wangneng Environment
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shenzhen and Wangneng is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Wangneng Environment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wangneng Environment 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 Wangneng Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wangneng Environment has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and Wangneng Environment go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Wangneng Environment
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to generate 1.62 times more return on investment than Wangneng Environment. However, Shenzhen Hifuture is 1.62 times more volatile than Wangneng Environment Co. It trades about 0.25 of its potential returns per unit of risk. Wangneng Environment Co is currently generating about 0.08 per unit of risk. If you would invest 273.00 in Shenzhen Hifuture Electric on September 13, 2024 and sell it today you would earn a total of 42.00 from holding Shenzhen Hifuture Electric or generate 15.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. Wangneng Environment Co
Performance |
| Timeline |
| Shenzhen Hifuture |
| Wangneng Environment |
Shenzhen Hifuture and Wangneng Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Wangneng Environment
The main advantage of trading using opposite Shenzhen Hifuture and Wangneng Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, Wangneng Environment 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 Wangneng Environment will offset losses from the drop in Wangneng Environment's long position.| Shenzhen Hifuture vs. China Nonferrous Metal | Shenzhen Hifuture vs. Xinya Electronic Co | Shenzhen Hifuture vs. Gansu Yasheng Industrial | Shenzhen Hifuture vs. Shenzhen Clou Electronics |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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