Correlation Between Hunan Mendale and Shanghai Shuixing
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hunan Mendale Hometextile and Shanghai Shuixing Home, you can compare the effects of market volatilities on Hunan Mendale and Shanghai Shuixing 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 Hunan Mendale with a short position of Shanghai Shuixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Mendale and Shanghai Shuixing.
Diversification Opportunities for Hunan Mendale and Shanghai Shuixing
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hunan and Shanghai is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Mendale Hometextile and Shanghai Shuixing Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Shuixing Home and Hunan Mendale 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 Hunan Mendale Hometextile are associated (or correlated) with Shanghai Shuixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Shuixing Home has no effect on the direction of Hunan Mendale i.e., Hunan Mendale and Shanghai Shuixing go up and down completely randomly.
Pair Corralation between Hunan Mendale and Shanghai Shuixing
Assuming the 90 days trading horizon Hunan Mendale Hometextile is expected to generate 1.36 times more return on investment than Shanghai Shuixing. However, Hunan Mendale is 1.36 times more volatile than Shanghai Shuixing Home. It trades about 0.06 of its potential returns per unit of risk. Shanghai Shuixing Home is currently generating about 0.01 per unit of risk. If you would invest 211.00 in Hunan Mendale Hometextile on November 3, 2024 and sell it today you would earn a total of 98.00 from holding Hunan Mendale Hometextile or generate 46.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Mendale Hometextile vs. Shanghai Shuixing Home
Performance |
| Timeline |
| Hunan Mendale Hometextile |
| Shanghai Shuixing Home |
Hunan Mendale and Shanghai Shuixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Mendale and Shanghai Shuixing
The main advantage of trading using opposite Hunan Mendale and Shanghai Shuixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Mendale position performs unexpectedly, Shanghai Shuixing 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 Shanghai Shuixing will offset losses from the drop in Shanghai Shuixing's long position.| Hunan Mendale vs. Jilin OLED Material | Hunan Mendale vs. Duzhe Publishing Media | Hunan Mendale vs. Juneyao Airlines | Hunan Mendale vs. Sanxiang Advanced Materials |
| Shanghai Shuixing vs. Beijing Mainstreets Investment | Shanghai Shuixing vs. Shanghai Jinfeng Wine | Shanghai Shuixing vs. Zhongrun Resources Investment | Shanghai Shuixing vs. Bingo Software Co |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |