Correlation Between Shenzhen INVT and HeBei Jinniu
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By analyzing existing cross correlation between Shenzhen INVT Electric and HeBei Jinniu Chemical, you can compare the effects of market volatilities on Shenzhen INVT and HeBei Jinniu 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 INVT with a short position of HeBei Jinniu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen INVT and HeBei Jinniu.
Diversification Opportunities for Shenzhen INVT and HeBei Jinniu
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and HeBei is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen INVT Electric and HeBei Jinniu Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HeBei Jinniu Chemical and Shenzhen INVT 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 INVT Electric are associated (or correlated) with HeBei Jinniu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HeBei Jinniu Chemical has no effect on the direction of Shenzhen INVT i.e., Shenzhen INVT and HeBei Jinniu go up and down completely randomly.
Pair Corralation between Shenzhen INVT and HeBei Jinniu
Assuming the 90 days trading horizon Shenzhen INVT Electric is expected to under-perform the HeBei Jinniu. In addition to that, Shenzhen INVT is 1.09 times more volatile than HeBei Jinniu Chemical. It trades about -0.02 of its total potential returns per unit of risk. HeBei Jinniu Chemical is currently generating about 0.02 per unit of volatility. If you would invest 497.00 in HeBei Jinniu Chemical on October 9, 2024 and sell it today you would earn a total of 22.00 from holding HeBei Jinniu Chemical or generate 4.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen INVT Electric vs. HeBei Jinniu Chemical
Performance |
| Timeline |
| Shenzhen INVT Electric |
| HeBei Jinniu Chemical |
Shenzhen INVT and HeBei Jinniu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen INVT and HeBei Jinniu
The main advantage of trading using opposite Shenzhen INVT and HeBei Jinniu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen INVT position performs unexpectedly, HeBei Jinniu 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 HeBei Jinniu will offset losses from the drop in HeBei Jinniu's long position.| Shenzhen INVT vs. China Petroleum Chemical | Shenzhen INVT vs. PetroChina Co Ltd | Shenzhen INVT vs. China State Construction | Shenzhen INVT vs. China Railway Group |
| HeBei Jinniu vs. Sinofibers Technology Co | HeBei Jinniu vs. Gansu Jiu Steel | HeBei Jinniu vs. Penyao Environmental Protection | HeBei Jinniu vs. Tianshui Huatian Technology |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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