Correlation Between Shenzhen Hifuture and Beijing Kaiwen
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Beijing Kaiwen Education, you can compare the effects of market volatilities on Shenzhen Hifuture and Beijing Kaiwen 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 Beijing Kaiwen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Beijing Kaiwen.
Diversification Opportunities for Shenzhen Hifuture and Beijing Kaiwen
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shenzhen and Beijing is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Beijing Kaiwen Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Kaiwen Education 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 Beijing Kaiwen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Kaiwen Education has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and Beijing Kaiwen go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Beijing Kaiwen
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to generate 0.67 times more return on investment than Beijing Kaiwen. However, Shenzhen Hifuture Electric is 1.5 times less risky than Beijing Kaiwen. It trades about 0.31 of its potential returns per unit of risk. Beijing Kaiwen Education is currently generating about 0.14 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 58.00 from holding Shenzhen Hifuture Electric or generate 21.25% 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. Beijing Kaiwen Education
Performance |
| Timeline |
| Shenzhen Hifuture |
| Beijing Kaiwen Education |
Shenzhen Hifuture and Beijing Kaiwen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Beijing Kaiwen
The main advantage of trading using opposite Shenzhen Hifuture and Beijing Kaiwen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, Beijing Kaiwen 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 Beijing Kaiwen will offset losses from the drop in Beijing Kaiwen'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 |
| Beijing Kaiwen vs. Shandong Huifa Foodstuff | Beijing Kaiwen vs. Youyou Foods Co | Beijing Kaiwen vs. Aluminum Corp of | Beijing Kaiwen vs. Guangdong Jingyi Metal |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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