Correlation Between Shenzhen Hifuture and JuneYao Dairy
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and JuneYao Dairy Co, you can compare the effects of market volatilities on Shenzhen Hifuture and JuneYao Dairy 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 JuneYao Dairy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and JuneYao Dairy.
Diversification Opportunities for Shenzhen Hifuture and JuneYao Dairy
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and JuneYao is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and JuneYao Dairy Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JuneYao Dairy 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 JuneYao Dairy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JuneYao Dairy has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and JuneYao Dairy go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and JuneYao Dairy
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to generate 1.02 times more return on investment than JuneYao Dairy. However, Shenzhen Hifuture is 1.02 times more volatile than JuneYao Dairy Co. It trades about -0.35 of its potential returns per unit of risk. JuneYao Dairy Co is currently generating about -0.45 per unit of risk. If you would invest 329.00 in Shenzhen Hifuture Electric on October 14, 2024 and sell it today you would lose (74.00) from holding Shenzhen Hifuture Electric or give up 22.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. JuneYao Dairy Co
Performance |
| Timeline |
| Shenzhen Hifuture |
| JuneYao Dairy |
Shenzhen Hifuture and JuneYao Dairy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and JuneYao Dairy
The main advantage of trading using opposite Shenzhen Hifuture and JuneYao Dairy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, JuneYao Dairy 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 JuneYao Dairy will offset losses from the drop in JuneYao Dairy's long position.| Shenzhen Hifuture vs. Tibet Huayu Mining | Shenzhen Hifuture vs. Great Sun Foods Co | Shenzhen Hifuture vs. HaiXin Foods Co | Shenzhen Hifuture vs. Pengxin International Mining |
| JuneYao Dairy vs. Western Metal Materials | JuneYao Dairy vs. Allwin Telecommunication Co | JuneYao Dairy vs. Nanjing Putian Telecommunications | JuneYao Dairy vs. Tibet Huayu 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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