Correlation Between Shenzhen Hifuture and Western Mining
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Western Mining Co, you can compare the effects of market volatilities on Shenzhen Hifuture and Western Mining 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 Western Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Western Mining.
Diversification Opportunities for Shenzhen Hifuture and Western Mining
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shenzhen and Western is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Western Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Mining 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 Western Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Mining has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and Western Mining go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Western Mining
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to generate 1.42 times more return on investment than Western Mining. However, Shenzhen Hifuture is 1.42 times more volatile than Western Mining Co. It trades about 0.15 of its potential returns per unit of risk. Western Mining Co is currently generating about -0.17 per unit of risk. If you would invest 242.00 in Shenzhen Hifuture Electric on August 27, 2024 and sell it today you would earn a total of 20.00 from holding Shenzhen Hifuture Electric or generate 8.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. Western Mining Co
Performance |
| Timeline |
| Shenzhen Hifuture |
| Western Mining |
Shenzhen Hifuture and Western Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Western Mining
The main advantage of trading using opposite Shenzhen Hifuture and Western Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, Western Mining 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 Western Mining will offset losses from the drop in Western Mining's long position.| Shenzhen Hifuture vs. Anhui Deli Household | Shenzhen Hifuture vs. Tianjin Hi Tech Development | Shenzhen Hifuture vs. Juneyao Airlines | Shenzhen Hifuture vs. Shanghai Metersbonwe FashionAccessories |
| Western Mining vs. Zijin Mining Group | Western Mining vs. Wanhua Chemical Group | Western Mining vs. Baoshan Iron Steel | Western Mining vs. Shandong Gold Mining |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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