Correlation Between Shenzhen Hifuture and Shandong Homey
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Shandong Homey Aquatic, you can compare the effects of market volatilities on Shenzhen Hifuture and Shandong Homey 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 Shandong Homey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Shandong Homey.
Diversification Opportunities for Shenzhen Hifuture and Shandong Homey
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shenzhen and Shandong is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Shandong Homey Aquatic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Homey Aquatic 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 Shandong Homey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Homey Aquatic has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and Shandong Homey go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Shandong Homey
Assuming the 90 days trading horizon Shenzhen Hifuture is expected to generate 1.77 times less return on investment than Shandong Homey. In addition to that, Shenzhen Hifuture is 1.13 times more volatile than Shandong Homey Aquatic. It trades about 0.05 of its total potential returns per unit of risk. Shandong Homey Aquatic is currently generating about 0.1 per unit of volatility. If you would invest 175.00 in Shandong Homey Aquatic on September 3, 2024 and sell it today you would earn a total of 78.00 from holding Shandong Homey Aquatic or generate 44.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.17% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. Shandong Homey Aquatic
Performance |
| Timeline |
| Shenzhen Hifuture |
| Shandong Homey Aquatic |
Shenzhen Hifuture and Shandong Homey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Shandong Homey
The main advantage of trading using opposite Shenzhen Hifuture and Shandong Homey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, Shandong Homey 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 Shandong Homey will offset losses from the drop in Shandong Homey's long position.| Shenzhen Hifuture vs. Wuhan Yangtze Communication | Shenzhen Hifuture vs. Holitech Technology Co | Shenzhen Hifuture vs. Shenzhen Kexin Communication | Shenzhen Hifuture vs. Saurer Intelligent Technology |
| Shandong Homey vs. Henan Shuanghui Investment | Shandong Homey vs. Lander Sports Development | Shandong Homey vs. Harbin Hatou Investment | Shandong Homey vs. Jointo Energy Investment |
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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