Correlation Between Shenzhen Hifuture and Sanan Optoelectronics
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Sanan Optoelectronics Co, you can compare the effects of market volatilities on Shenzhen Hifuture and Sanan Optoelectronics 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 Sanan Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Sanan Optoelectronics.
Diversification Opportunities for Shenzhen Hifuture and Sanan Optoelectronics
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Sanan is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Sanan Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanan Optoelectronics 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 Sanan Optoelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanan Optoelectronics has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and Sanan Optoelectronics go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Sanan Optoelectronics
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to under-perform the Sanan Optoelectronics. In addition to that, Shenzhen Hifuture is 1.22 times more volatile than Sanan Optoelectronics Co. It trades about -0.21 of its total potential returns per unit of risk. Sanan Optoelectronics Co is currently generating about 0.18 per unit of volatility. If you would invest 1,174 in Sanan Optoelectronics Co on December 4, 2024 and sell it today you would earn a total of 58.00 from holding Sanan Optoelectronics Co or generate 4.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. Sanan Optoelectronics Co
Performance |
| Timeline |
| Shenzhen Hifuture |
| Sanan Optoelectronics |
Shenzhen Hifuture and Sanan Optoelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Sanan Optoelectronics
The main advantage of trading using opposite Shenzhen Hifuture and Sanan Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, Sanan Optoelectronics 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 Sanan Optoelectronics will offset losses from the drop in Sanan Optoelectronics' long position.| Shenzhen Hifuture vs. Jiangsu Jinling Sports | Shenzhen Hifuture vs. Heilongjiang Transport Development | Shenzhen Hifuture vs. Shenzhen SDG Information | Shenzhen Hifuture vs. Longmaster Information Tech |
| Sanan Optoelectronics vs. Industrial and Commercial | Sanan Optoelectronics vs. Kweichow Moutai Co | Sanan Optoelectronics vs. Agricultural Bank of | Sanan Optoelectronics vs. China Mobile Limited |
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