Correlation Between Shenzhen Hifuture and Hangzhou EZVIZ
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Hangzhou EZVIZ Network, you can compare the effects of market volatilities on Shenzhen Hifuture and Hangzhou EZVIZ 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 Hangzhou EZVIZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Hangzhou EZVIZ.
Diversification Opportunities for Shenzhen Hifuture and Hangzhou EZVIZ
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shenzhen and Hangzhou is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Hangzhou EZVIZ Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou EZVIZ Network 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 Hangzhou EZVIZ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou EZVIZ Network has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and Hangzhou EZVIZ go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Hangzhou EZVIZ
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to under-perform the Hangzhou EZVIZ. In addition to that, Shenzhen Hifuture is 1.32 times more volatile than Hangzhou EZVIZ Network. It trades about -0.01 of its total potential returns per unit of risk. Hangzhou EZVIZ Network is currently generating about 0.04 per unit of volatility. If you would invest 3,244 in Hangzhou EZVIZ Network on November 8, 2024 and sell it today you would earn a total of 594.00 from holding Hangzhou EZVIZ Network or generate 18.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.57% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. Hangzhou EZVIZ Network
Performance |
| Timeline |
| Shenzhen Hifuture |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Hangzhou EZVIZ Network |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Shenzhen Hifuture and Hangzhou EZVIZ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Hangzhou EZVIZ
The main advantage of trading using opposite Shenzhen Hifuture and Hangzhou EZVIZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, Hangzhou EZVIZ 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 Hangzhou EZVIZ will offset losses from the drop in Hangzhou EZVIZ's long position.The idea behind Shenzhen Hifuture Electric and Hangzhou EZVIZ Network pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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