Correlation Between Shenzhen Hifuture and Guangdong Tianhe
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Guangdong Tianhe Agricultural, you can compare the effects of market volatilities on Shenzhen Hifuture and Guangdong Tianhe 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 Guangdong Tianhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Guangdong Tianhe.
Diversification Opportunities for Shenzhen Hifuture and Guangdong Tianhe
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Guangdong is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Guangdong Tianhe Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Tianhe Agr 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 Guangdong Tianhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Tianhe Agr has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and Guangdong Tianhe go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Guangdong Tianhe
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to under-perform the Guangdong Tianhe. In addition to that, Shenzhen Hifuture is 1.06 times more volatile than Guangdong Tianhe Agricultural. It trades about -0.48 of its total potential returns per unit of risk. Guangdong Tianhe Agricultural is currently generating about -0.42 per unit of volatility. If you would invest 725.00 in Guangdong Tianhe Agricultural on October 15, 2024 and sell it today you would lose (160.00) from holding Guangdong Tianhe Agricultural or give up 22.07% 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. Guangdong Tianhe Agricultural
Performance |
| Timeline |
| Shenzhen Hifuture |
| Guangdong Tianhe Agr |
Shenzhen Hifuture and Guangdong Tianhe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Guangdong Tianhe
The main advantage of trading using opposite Shenzhen Hifuture and Guangdong Tianhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, Guangdong Tianhe 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 Guangdong Tianhe will offset losses from the drop in Guangdong Tianhe's long position.| Shenzhen Hifuture vs. Tibet Huayu Mining | Shenzhen Hifuture vs. Great Sun Foods Co | Shenzhen Hifuture vs. HaiXin Foods Co | Shenzhen Hifuture vs. Pengxin International Mining |
| Guangdong Tianhe vs. Penyao Environmental Protection | Guangdong Tianhe vs. GreenTech Environmental Co | Guangdong Tianhe vs. Zoy Home Furnishing | Guangdong Tianhe vs. Fujian Nanwang Environment |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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