Correlation Between Shenzhen Hifuture and Goertek
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen Hifuture Electric and Goertek, you can compare the effects of market volatilities on Shenzhen Hifuture and Goertek 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 Goertek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Goertek.
Diversification Opportunities for Shenzhen Hifuture and Goertek
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenzhen and Goertek is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Goertek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goertek 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 Goertek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goertek has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and Goertek go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Goertek
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to generate 0.9 times more return on investment than Goertek. However, Shenzhen Hifuture Electric is 1.11 times less risky than Goertek. It trades about 0.22 of its potential returns per unit of risk. Goertek is currently generating about 0.03 per unit of risk. If you would invest 242.00 in Shenzhen Hifuture Electric on August 28, 2024 and sell it today you would earn a total of 33.00 from holding Shenzhen Hifuture Electric or generate 13.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. Goertek
Performance |
| Timeline |
| Shenzhen Hifuture |
| Goertek |
Shenzhen Hifuture and Goertek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Goertek
The main advantage of trading using opposite Shenzhen Hifuture and Goertek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, Goertek 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 Goertek will offset losses from the drop in Goertek's long position.| Shenzhen Hifuture vs. Anhui Deli Household | Shenzhen Hifuture vs. Tianjin Hi Tech Development | Shenzhen Hifuture vs. Juneyao Airlines | Shenzhen Hifuture vs. Shanghai Metersbonwe FashionAccessories |
| Goertek vs. Nanjing Putian Telecommunications | Goertek vs. Shenzhen Hifuture Electric | Goertek vs. Shenyang Huitian Thermal | Goertek vs. Jiangsu Xinning Modern |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |