Correlation Between Shenzhen Hifuture and Shanghai Sanyou
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Shanghai Sanyou Medical, you can compare the effects of market volatilities on Shenzhen Hifuture and Shanghai Sanyou 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 Shanghai Sanyou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Shanghai Sanyou.
Diversification Opportunities for Shenzhen Hifuture and Shanghai Sanyou
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shenzhen and Shanghai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Shanghai Sanyou Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Sanyou 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 Shanghai Sanyou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Sanyou Medical has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and Shanghai Sanyou go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Shanghai Sanyou
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to generate 1.34 times more return on investment than Shanghai Sanyou. However, Shenzhen Hifuture is 1.34 times more volatile than Shanghai Sanyou Medical. It trades about 0.03 of its potential returns per unit of risk. Shanghai Sanyou Medical is currently generating about 0.04 per unit of risk. If you would invest 263.00 in Shenzhen Hifuture Electric on September 1, 2024 and sell it today you would earn a total of 19.00 from holding Shenzhen Hifuture Electric or generate 7.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.18% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. Shanghai Sanyou Medical
Performance |
| Timeline |
| Shenzhen Hifuture |
| Shanghai Sanyou Medical |
Shenzhen Hifuture and Shanghai Sanyou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Shanghai Sanyou
The main advantage of trading using opposite Shenzhen Hifuture and Shanghai Sanyou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, Shanghai Sanyou 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 Shanghai Sanyou will offset losses from the drop in Shanghai Sanyou's long position.| Shenzhen Hifuture vs. CareRay Digital Medical | Shenzhen Hifuture vs. Chison Medical Technologies | Shenzhen Hifuture vs. Nanjing Vishee Medical | Shenzhen Hifuture vs. Linewell Software Co |
| Shanghai Sanyou vs. Nanjing Putian Telecommunications | Shanghai Sanyou vs. Shenzhen Hifuture Electric | Shanghai Sanyou vs. Tianjin Realty Development | Shanghai Sanyou 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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