Correlation Between Changchun and Henan Shuanghui
Specify exactly 2 symbols:
By analyzing existing cross correlation between Changchun UP Optotech and Henan Shuanghui Investment, you can compare the effects of market volatilities on Changchun and Henan Shuanghui 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 Changchun with a short position of Henan Shuanghui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun and Henan Shuanghui.
Diversification Opportunities for Changchun and Henan Shuanghui
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Changchun and Henan is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Changchun UP Optotech and Henan Shuanghui Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Shuanghui Inve and Changchun 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 Changchun UP Optotech are associated (or correlated) with Henan Shuanghui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Shuanghui Inve has no effect on the direction of Changchun i.e., Changchun and Henan Shuanghui go up and down completely randomly.
Pair Corralation between Changchun and Henan Shuanghui
Assuming the 90 days trading horizon Changchun UP Optotech is expected to generate 3.15 times more return on investment than Henan Shuanghui. However, Changchun is 3.15 times more volatile than Henan Shuanghui Investment. It trades about 0.06 of its potential returns per unit of risk. Henan Shuanghui Investment is currently generating about 0.02 per unit of risk. If you would invest 3,271 in Changchun UP Optotech on October 14, 2024 and sell it today you would earn a total of 317.00 from holding Changchun UP Optotech or generate 9.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun UP Optotech vs. Henan Shuanghui Investment
Performance |
| Timeline |
| Changchun UP Optotech |
| Henan Shuanghui Inve |
Changchun and Henan Shuanghui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun and Henan Shuanghui
The main advantage of trading using opposite Changchun and Henan Shuanghui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun position performs unexpectedly, Henan Shuanghui 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 Henan Shuanghui will offset losses from the drop in Henan Shuanghui's long position.| Changchun vs. Shenyang Blue Silver | Changchun vs. Gem Year Industrial Co | Changchun vs. Qingdao Choho Industrial | Changchun vs. Tonghua Grape Wine |
| Henan Shuanghui vs. Harvest Fund Management | Henan Shuanghui vs. Great Sun Foods Co | Henan Shuanghui vs. Dalian Thermal Power | Henan Shuanghui 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |