Correlation Between Shenzhen Hifuture and Shandong Sinoglory
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Shandong Sinoglory Health, you can compare the effects of market volatilities on Shenzhen Hifuture and Shandong Sinoglory 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 Sinoglory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Shandong Sinoglory.
Diversification Opportunities for Shenzhen Hifuture and Shandong Sinoglory
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenzhen and Shandong is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Shandong Sinoglory Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sinoglory Health 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 Sinoglory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sinoglory Health has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and Shandong Sinoglory go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Shandong Sinoglory
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to generate 1.23 times more return on investment than Shandong Sinoglory. However, Shenzhen Hifuture is 1.23 times more volatile than Shandong Sinoglory Health. It trades about 0.33 of its potential returns per unit of risk. Shandong Sinoglory Health is currently generating about 0.15 per unit of risk. If you would invest 234.00 in Shenzhen Hifuture Electric on September 3, 2024 and sell it today you would earn a total of 48.00 from holding Shenzhen Hifuture Electric or generate 20.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. Shandong Sinoglory Health
Performance |
| Timeline |
| Shenzhen Hifuture |
| Shandong Sinoglory Health |
Shenzhen Hifuture and Shandong Sinoglory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Shandong Sinoglory
The main advantage of trading using opposite Shenzhen Hifuture and Shandong Sinoglory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, Shandong Sinoglory 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 Sinoglory will offset losses from the drop in Shandong Sinoglory'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 Sinoglory vs. Beijing Wantai Biological | Shandong Sinoglory vs. Aluminum Corp of | Shandong Sinoglory vs. COL Digital Publishing | Shandong Sinoglory vs. Shaanxi Meineng Clean |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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