Correlation Between Shenzhen Hifuture and Hubei Geoway
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Hubei Geoway Investment, you can compare the effects of market volatilities on Shenzhen Hifuture and Hubei Geoway 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 Hubei Geoway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Hubei Geoway.
Diversification Opportunities for Shenzhen Hifuture and Hubei Geoway
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shenzhen and Hubei is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Hubei Geoway Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Geoway Investment 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 Hubei Geoway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Geoway Investment has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and Hubei Geoway go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Hubei Geoway
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to generate 0.87 times more return on investment than Hubei Geoway. However, Shenzhen Hifuture Electric is 1.15 times less risky than Hubei Geoway. It trades about 0.28 of its potential returns per unit of risk. Hubei Geoway Investment is currently generating about 0.02 per unit of risk. If you would invest 242.00 in Shenzhen Hifuture Electric on August 29, 2024 and sell it today you would earn a total of 47.00 from holding Shenzhen Hifuture Electric or generate 19.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. Hubei Geoway Investment
Performance |
| Timeline |
| Shenzhen Hifuture |
| Hubei Geoway Investment |
Shenzhen Hifuture and Hubei Geoway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Hubei Geoway
The main advantage of trading using opposite Shenzhen Hifuture and Hubei Geoway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, Hubei Geoway 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 Hubei Geoway will offset losses from the drop in Hubei Geoway'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 |
| Hubei Geoway vs. Ningxia Building Materials | Hubei Geoway vs. Orinko Advanced Plastics | Hubei Geoway vs. Sanxiang Advanced Materials | Hubei Geoway vs. Ningbo Tip Rubber |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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