Correlation Between Shenzhen Hifuture and Gan Yuan
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Gan Yuan Foods, you can compare the effects of market volatilities on Shenzhen Hifuture and Gan Yuan 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 Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Gan Yuan.
Diversification Opportunities for Shenzhen Hifuture and Gan Yuan
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenzhen and Gan is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan Foods 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 Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and Gan Yuan go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Gan Yuan
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to generate 1.01 times more return on investment than Gan Yuan. However, Shenzhen Hifuture is 1.01 times more volatile than Gan Yuan Foods. It trades about 0.21 of its potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.14 per unit of risk. If you would invest 225.00 in Shenzhen Hifuture Electric on September 3, 2024 and sell it today you would earn a total of 57.00 from holding Shenzhen Hifuture Electric or generate 25.33% 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. Gan Yuan Foods
Performance |
| Timeline |
| Shenzhen Hifuture |
| Gan Yuan Foods |
Shenzhen Hifuture and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Gan Yuan
The main advantage of trading using opposite Shenzhen Hifuture and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan's long position.| Shenzhen Hifuture vs. Wuhan Yangtze Communication | Shenzhen Hifuture vs. Holitech Technology Co | Shenzhen Hifuture vs. Shenzhen Kexin Communication | Shenzhen Hifuture vs. Saurer Intelligent Technology |
| Gan Yuan vs. Beijing Wantai Biological | Gan Yuan vs. Aluminum Corp of | Gan Yuan vs. COL Digital Publishing | Gan Yuan vs. Shaanxi Meineng Clean |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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