Correlation Between Shenzhen Hifuture and Zhejiang Weixing
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Zhejiang Weixing New, you can compare the effects of market volatilities on Shenzhen Hifuture and Zhejiang Weixing 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 Zhejiang Weixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Zhejiang Weixing.
Diversification Opportunities for Shenzhen Hifuture and Zhejiang Weixing
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shenzhen and Zhejiang is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Zhejiang Weixing New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Weixing New 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 Zhejiang Weixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Weixing New has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and Zhejiang Weixing go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Zhejiang Weixing
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to under-perform the Zhejiang Weixing. In addition to that, Shenzhen Hifuture is 1.5 times more volatile than Zhejiang Weixing New. It trades about -0.03 of its total potential returns per unit of risk. Zhejiang Weixing New is currently generating about -0.02 per unit of volatility. If you would invest 1,566 in Zhejiang Weixing New on August 26, 2024 and sell it today you would lose (299.00) from holding Zhejiang Weixing New or give up 19.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.62% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. Zhejiang Weixing New
Performance |
| Timeline |
| Shenzhen Hifuture |
| Zhejiang Weixing New |
Shenzhen Hifuture and Zhejiang Weixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Zhejiang Weixing
The main advantage of trading using opposite Shenzhen Hifuture and Zhejiang Weixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, Zhejiang Weixing 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 Zhejiang Weixing will offset losses from the drop in Zhejiang Weixing'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 |
| Zhejiang Weixing vs. Agricultural Bank of | Zhejiang Weixing vs. Industrial and Commercial | Zhejiang Weixing vs. Bank of China | Zhejiang Weixing vs. China Construction Bank |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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