Correlation Between Shenzhen Worldunion and Hubeiyichang Transportation
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By analyzing existing cross correlation between Shenzhen Worldunion Properties and Hubeiyichang Transportation Group, you can compare the effects of market volatilities on Shenzhen Worldunion and Hubeiyichang Transportation 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 Worldunion with a short position of Hubeiyichang Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Worldunion and Hubeiyichang Transportation.
Diversification Opportunities for Shenzhen Worldunion and Hubeiyichang Transportation
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Hubeiyichang is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Worldunion Properties and Hubeiyichang Transportation Gr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubeiyichang Transportation and Shenzhen Worldunion 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 Worldunion Properties are associated (or correlated) with Hubeiyichang Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubeiyichang Transportation has no effect on the direction of Shenzhen Worldunion i.e., Shenzhen Worldunion and Hubeiyichang Transportation go up and down completely randomly.
Pair Corralation between Shenzhen Worldunion and Hubeiyichang Transportation
Assuming the 90 days trading horizon Shenzhen Worldunion Properties is expected to generate 2.06 times more return on investment than Hubeiyichang Transportation. However, Shenzhen Worldunion is 2.06 times more volatile than Hubeiyichang Transportation Group. It trades about 0.04 of its potential returns per unit of risk. Hubeiyichang Transportation Group is currently generating about 0.03 per unit of risk. If you would invest 266.00 in Shenzhen Worldunion Properties on September 15, 2024 and sell it today you would earn a total of 73.00 from holding Shenzhen Worldunion Properties or generate 27.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Worldunion Properties vs. Hubeiyichang Transportation Gr
Performance |
| Timeline |
| Shenzhen Worldunion |
| Hubeiyichang Transportation |
Shenzhen Worldunion and Hubeiyichang Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Worldunion and Hubeiyichang Transportation
The main advantage of trading using opposite Shenzhen Worldunion and Hubeiyichang Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Worldunion position performs unexpectedly, Hubeiyichang Transportation 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 Hubeiyichang Transportation will offset losses from the drop in Hubeiyichang Transportation's long position.| Shenzhen Worldunion vs. Hubeiyichang Transportation Group | Shenzhen Worldunion vs. Eastern Air Logistics | Shenzhen Worldunion vs. Ligao Foods CoLtd | Shenzhen Worldunion vs. Guangdong Wens Foodstuff |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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