Correlation Between Shenzhen Hifuture and Shandong Huifa
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen Hifuture Electric and Shandong Huifa Foodstuff, you can compare the effects of market volatilities on Shenzhen Hifuture and Shandong Huifa 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 Huifa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Shandong Huifa.
Diversification Opportunities for Shenzhen Hifuture and Shandong Huifa
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Shandong is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Shandong Huifa Foodstuff in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Huifa Foodstuff 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 Huifa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Huifa Foodstuff has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and Shandong Huifa go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Shandong Huifa
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to under-perform the Shandong Huifa. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Hifuture Electric is 1.08 times less risky than Shandong Huifa. The stock trades about -0.02 of its potential returns per unit of risk. The Shandong Huifa Foodstuff is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,651 in Shandong Huifa Foodstuff on September 14, 2024 and sell it today you would lose (50.00) from holding Shandong Huifa Foodstuff or give up 3.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.58% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. Shandong Huifa Foodstuff
Performance |
| Timeline |
| Shenzhen Hifuture |
| Shandong Huifa Foodstuff |
Shenzhen Hifuture and Shandong Huifa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Shandong Huifa
The main advantage of trading using opposite Shenzhen Hifuture and Shandong Huifa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, Shandong Huifa 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 Huifa will offset losses from the drop in Shandong Huifa'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 |
| Shandong Huifa vs. Nanjing Putian Telecommunications | Shandong Huifa vs. Tianjin Realty Development | Shandong Huifa vs. Kangyue Technology Co | Shandong Huifa vs. Shenzhen Hifuture Electric |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |