Correlation Between Shenzhen Hifuture and Zhende Medical
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Zhende Medical Co, you can compare the effects of market volatilities on Shenzhen Hifuture and Zhende Medical 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 Zhende Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Zhende Medical.
Diversification Opportunities for Shenzhen Hifuture and Zhende Medical
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenzhen and Zhende is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Zhende Medical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhende Medical 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 Zhende Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhende Medical has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and Zhende Medical go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Zhende Medical
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to generate 2.27 times more return on investment than Zhende Medical. However, Shenzhen Hifuture is 2.27 times more volatile than Zhende Medical Co. It trades about 0.33 of its potential returns per unit of risk. Zhende Medical Co is currently generating about -0.02 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. Zhende Medical Co
Performance |
| Timeline |
| Shenzhen Hifuture |
| Zhende Medical |
Shenzhen Hifuture and Zhende Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Zhende Medical
The main advantage of trading using opposite Shenzhen Hifuture and Zhende Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, Zhende Medical 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 Zhende Medical will offset losses from the drop in Zhende Medical'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 |
| Zhende Medical vs. Chengdu Kanghua Biological | Zhende Medical vs. Beijing Wantai Biological | Zhende Medical vs. Suzhou Novoprotein Scientific | Zhende Medical vs. Aluminum Corp of |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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