Correlation Between Shenzhen Hifuture and Eyebright Medical
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Eyebright Medical Technology, you can compare the effects of market volatilities on Shenzhen Hifuture and Eyebright 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 Eyebright Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Eyebright Medical.
Diversification Opportunities for Shenzhen Hifuture and Eyebright Medical
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shenzhen and Eyebright is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Eyebright Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eyebright 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 Eyebright Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eyebright Medical has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and Eyebright Medical go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Eyebright Medical
Assuming the 90 days trading horizon Shenzhen Hifuture is expected to generate 2.64 times less return on investment than Eyebright Medical. But when comparing it to its historical volatility, Shenzhen Hifuture Electric is 1.37 times less risky than Eyebright Medical. It trades about 0.05 of its potential returns per unit of risk. Eyebright Medical Technology is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 7,535 in Eyebright Medical Technology on September 2, 2024 and sell it today you would earn a total of 1,593 from holding Eyebright Medical Technology or generate 21.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.31% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. Eyebright Medical Technology
Performance |
| Timeline |
| Shenzhen Hifuture |
| Eyebright Medical |
Shenzhen Hifuture and Eyebright Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Eyebright Medical
The main advantage of trading using opposite Shenzhen Hifuture and Eyebright Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, Eyebright 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 Eyebright Medical will offset losses from the drop in Eyebright Medical's long position.| Shenzhen Hifuture vs. Kweichow Moutai Co | Shenzhen Hifuture vs. Shenzhen Mindray Bio Medical | Shenzhen Hifuture vs. Jiangsu Pacific Quartz | Shenzhen Hifuture vs. G bits Network Technology |
| Eyebright Medical vs. Nanjing Putian Telecommunications | Eyebright Medical vs. Shenzhen Hifuture Electric | Eyebright Medical vs. Tianjin Realty Development | Eyebright Medical vs. Shenyang Huitian Thermal |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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