Correlation Between Shenzhen Hifuture and Jiangsu Xinning
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Jiangsu Xinning Modern, you can compare the effects of market volatilities on Shenzhen Hifuture and Jiangsu Xinning 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 Jiangsu Xinning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Jiangsu Xinning.
Diversification Opportunities for Shenzhen Hifuture and Jiangsu Xinning
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shenzhen and Jiangsu is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Jiangsu Xinning Modern in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinning Modern 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 Jiangsu Xinning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinning Modern has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and Jiangsu Xinning go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Jiangsu Xinning
Assuming the 90 days trading horizon Shenzhen Hifuture is expected to generate 1.19 times less return on investment than Jiangsu Xinning. But when comparing it to its historical volatility, Shenzhen Hifuture Electric is 1.44 times less risky than Jiangsu Xinning. It trades about 0.28 of its potential returns per unit of risk. Jiangsu Xinning Modern is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 325.00 in Jiangsu Xinning Modern on August 29, 2024 and sell it today you would earn a total of 73.00 from holding Jiangsu Xinning Modern or generate 22.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. Jiangsu Xinning Modern
Performance |
| Timeline |
| Shenzhen Hifuture |
| Jiangsu Xinning Modern |
Shenzhen Hifuture and Jiangsu Xinning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Jiangsu Xinning
The main advantage of trading using opposite Shenzhen Hifuture and Jiangsu Xinning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, Jiangsu Xinning 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 Jiangsu Xinning will offset losses from the drop in Jiangsu Xinning's long position.| Shenzhen Hifuture vs. Shanghai Xinhua Media | Shenzhen Hifuture vs. Inly Media Co | Shenzhen Hifuture vs. China Nonferrous Metal | Shenzhen Hifuture vs. Threes Company Media |
| Jiangsu Xinning vs. China Sports Industry | Jiangsu Xinning vs. ZYF Lopsking Aluminum | Jiangsu Xinning vs. Sunny Loan Top | Jiangsu Xinning vs. Anhui Transport Consulting |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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