Correlation Between Shenzhen Hifuture and Marssenger Kitchenware
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Marssenger Kitchenware Co, you can compare the effects of market volatilities on Shenzhen Hifuture and Marssenger Kitchenware 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 Marssenger Kitchenware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Marssenger Kitchenware.
Diversification Opportunities for Shenzhen Hifuture and Marssenger Kitchenware
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Marssenger is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Marssenger Kitchenware Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marssenger Kitchenware 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 Marssenger Kitchenware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marssenger Kitchenware has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and Marssenger Kitchenware go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Marssenger Kitchenware
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to under-perform the Marssenger Kitchenware. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Hifuture Electric is 2.16 times less risky than Marssenger Kitchenware. The stock trades about -0.25 of its potential returns per unit of risk. The Marssenger Kitchenware Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,289 in Marssenger Kitchenware Co on November 5, 2024 and sell it today you would earn a total of 40.00 from holding Marssenger Kitchenware Co or generate 3.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. Marssenger Kitchenware Co
Performance |
| Timeline |
| Shenzhen Hifuture |
| Marssenger Kitchenware |
Shenzhen Hifuture and Marssenger Kitchenware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Marssenger Kitchenware
The main advantage of trading using opposite Shenzhen Hifuture and Marssenger Kitchenware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, Marssenger Kitchenware 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 Marssenger Kitchenware will offset losses from the drop in Marssenger Kitchenware's long position.| Shenzhen Hifuture vs. Youngy Health Co | Shenzhen Hifuture vs. Impulse Qingdao Health | Shenzhen Hifuture vs. Guangzhou Seagull Kitchen | Shenzhen Hifuture vs. Anhui Huaren Health |
| Marssenger Kitchenware vs. Industrial and Commercial | Marssenger Kitchenware vs. Agricultural Bank of | Marssenger Kitchenware vs. China Construction Bank | Marssenger Kitchenware vs. Bank of China |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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