Correlation Between Shenzhen Hifuture and Hang Xiao
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Hang Xiao Steel, you can compare the effects of market volatilities on Shenzhen Hifuture and Hang Xiao 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 Hang Xiao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Hang Xiao.
Diversification Opportunities for Shenzhen Hifuture and Hang Xiao
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shenzhen and Hang is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Hang Xiao Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hang Xiao Steel 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 Hang Xiao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hang Xiao Steel has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and Hang Xiao go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Hang Xiao
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to generate 1.32 times more return on investment than Hang Xiao. However, Shenzhen Hifuture is 1.32 times more volatile than Hang Xiao Steel. It trades about 0.31 of its potential returns per unit of risk. Hang Xiao Steel is currently generating about 0.02 per unit of risk. If you would invest 273.00 in Shenzhen Hifuture Electric on September 13, 2024 and sell it today you would earn a total of 58.00 from holding Shenzhen Hifuture Electric or generate 21.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. Hang Xiao Steel
Performance |
| Timeline |
| Shenzhen Hifuture |
| Hang Xiao Steel |
Shenzhen Hifuture and Hang Xiao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Hang Xiao
The main advantage of trading using opposite Shenzhen Hifuture and Hang Xiao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, Hang Xiao 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 Hang Xiao will offset losses from the drop in Hang Xiao's long position.| Shenzhen Hifuture vs. Agricultural Bank of | Shenzhen Hifuture vs. Industrial and Commercial | Shenzhen Hifuture vs. Bank of China | Shenzhen Hifuture vs. PetroChina Co Ltd |
| Hang Xiao vs. Sanan Optoelectronics Co | Hang Xiao vs. Olympic Circuit Technology | Hang Xiao vs. Bomin Electronics Co | Hang Xiao vs. Unigroup Guoxin Microelectronics |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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