Correlation Between Shenzhen Hifuture and Anhui Huaren
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Anhui Huaren Health, you can compare the effects of market volatilities on Shenzhen Hifuture and Anhui Huaren 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 Anhui Huaren. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Anhui Huaren.
Diversification Opportunities for Shenzhen Hifuture and Anhui Huaren
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shenzhen and Anhui is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Anhui Huaren Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huaren Health 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 Anhui Huaren. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huaren Health has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and Anhui Huaren go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Anhui Huaren
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to generate 1.16 times more return on investment than Anhui Huaren. However, Shenzhen Hifuture is 1.16 times more volatile than Anhui Huaren Health. It trades about 0.01 of its potential returns per unit of risk. Anhui Huaren Health is currently generating about -0.06 per unit of risk. If you would invest 242.00 in Shenzhen Hifuture Electric on October 26, 2024 and sell it today you would lose (3.00) from holding Shenzhen Hifuture Electric or give up 1.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. Anhui Huaren Health
Performance |
| Timeline |
| Shenzhen Hifuture |
| Anhui Huaren Health |
Shenzhen Hifuture and Anhui Huaren Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Anhui Huaren
The main advantage of trading using opposite Shenzhen Hifuture and Anhui Huaren positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, Anhui Huaren 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 Anhui Huaren will offset losses from the drop in Anhui Huaren's long position.| Shenzhen Hifuture vs. Shenyang Chemical Industry | Shenzhen Hifuture vs. Vohringer Home Technology | Shenzhen Hifuture vs. Xilong Chemical Co | Shenzhen Hifuture vs. Lier Chemical Co |
| Anhui Huaren vs. Cloud Live Technology | Anhui Huaren vs. Nanjing Putian Telecommunications | Anhui Huaren vs. Shenzhen Coship Electronics | Anhui Huaren vs. Shenzhen Hifuture Electric |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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