Correlation Between Shenzhen Hifuture and Cloud Live
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Cloud Live Technology, you can compare the effects of market volatilities on Shenzhen Hifuture and Cloud Live 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 Cloud Live. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Cloud Live.
Diversification Opportunities for Shenzhen Hifuture and Cloud Live
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Cloud is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Cloud Live Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cloud Live Technology 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 Cloud Live. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cloud Live Technology has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and Cloud Live go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Cloud Live
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to generate 0.62 times more return on investment than Cloud Live. However, Shenzhen Hifuture Electric is 1.6 times less risky than Cloud Live. It trades about -0.32 of its potential returns per unit of risk. Cloud Live Technology is currently generating about -0.37 per unit of risk. If you would invest 290.00 in Shenzhen Hifuture Electric on October 28, 2024 and sell it today you would lose (54.00) from holding Shenzhen Hifuture Electric or give up 18.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. Cloud Live Technology
Performance |
| Timeline |
| Shenzhen Hifuture |
| Cloud Live Technology |
Shenzhen Hifuture and Cloud Live Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Cloud Live
The main advantage of trading using opposite Shenzhen Hifuture and Cloud Live positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, Cloud Live 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 Cloud Live will offset losses from the drop in Cloud Live's long position.| Shenzhen Hifuture vs. Lotus Health Group | Shenzhen Hifuture vs. Anhui Huaren Health | Shenzhen Hifuture vs. PKU HealthCare Corp | Shenzhen Hifuture vs. Shandong Sinoglory Health |
| Cloud Live vs. Songz Automobile Air | Cloud Live vs. Sinomach Automobile Co | Cloud Live vs. Sihui Fuji Electronics | Cloud Live vs. LianChuang Electronic Technology |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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