Correlation Between Shenzhen Hifuture and Sino Medical
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Sino Medical Sciences, you can compare the effects of market volatilities on Shenzhen Hifuture and Sino 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 Sino Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Sino Medical.
Diversification Opportunities for Shenzhen Hifuture and Sino Medical
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shenzhen and Sino is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Sino Medical Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino Medical Sciences 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 Sino Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino Medical Sciences has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and Sino Medical go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Sino Medical
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to under-perform the Sino Medical. In addition to that, Shenzhen Hifuture is 1.15 times more volatile than Sino Medical Sciences. It trades about -0.03 of its total potential returns per unit of risk. Sino Medical Sciences is currently generating about 0.01 per unit of volatility. If you would invest 1,127 in Sino Medical Sciences on September 3, 2024 and sell it today you would lose (41.00) from holding Sino Medical Sciences or give up 3.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.38% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. Sino Medical Sciences
Performance |
| Timeline |
| Shenzhen Hifuture |
| Sino Medical Sciences |
Shenzhen Hifuture and Sino Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Sino Medical
The main advantage of trading using opposite Shenzhen Hifuture and Sino Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, Sino 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 Sino Medical will offset losses from the drop in Sino 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 |
| Sino Medical vs. Chengdu Kanghua Biological | Sino Medical vs. Beijing Wantai Biological | Sino Medical vs. Suzhou Novoprotein Scientific | Sino 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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