Correlation Between Shenzhen Hifuture and Changzhou Almaden
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Changzhou Almaden Co, you can compare the effects of market volatilities on Shenzhen Hifuture and Changzhou Almaden 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 Changzhou Almaden. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Changzhou Almaden.
Diversification Opportunities for Shenzhen Hifuture and Changzhou Almaden
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shenzhen and Changzhou is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Changzhou Almaden Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changzhou Almaden 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 Changzhou Almaden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changzhou Almaden has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and Changzhou Almaden go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Changzhou Almaden
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to generate 1.42 times more return on investment than Changzhou Almaden. However, Shenzhen Hifuture is 1.42 times more volatile than Changzhou Almaden Co. It trades about -0.01 of its potential returns per unit of risk. Changzhou Almaden Co is currently generating about -0.04 per unit of risk. If you would invest 444.00 in Shenzhen Hifuture Electric on September 14, 2024 and sell it today you would lose (113.00) from holding Shenzhen Hifuture Electric or give up 25.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.61% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. Changzhou Almaden Co
Performance |
| Timeline |
| Shenzhen Hifuture |
| Changzhou Almaden |
Shenzhen Hifuture and Changzhou Almaden Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Changzhou Almaden
The main advantage of trading using opposite Shenzhen Hifuture and Changzhou Almaden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, Changzhou Almaden 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 Changzhou Almaden will offset losses from the drop in Changzhou Almaden'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 |
| Changzhou Almaden vs. Nanjing Putian Telecommunications | Changzhou Almaden vs. Tianjin Realty Development | Changzhou Almaden vs. Kangyue Technology Co | Changzhou Almaden 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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