Correlation Between Huasi Agricultural and Shenzhen Transsion
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By analyzing existing cross correlation between Huasi Agricultural Development and Shenzhen Transsion Holdings, you can compare the effects of market volatilities on Huasi Agricultural and Shenzhen Transsion 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 Huasi Agricultural with a short position of Shenzhen Transsion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huasi Agricultural and Shenzhen Transsion.
Diversification Opportunities for Huasi Agricultural and Shenzhen Transsion
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Huasi and Shenzhen is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Huasi Agricultural Development and Shenzhen Transsion Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Transsion and Huasi Agricultural 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 Huasi Agricultural Development are associated (or correlated) with Shenzhen Transsion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Transsion has no effect on the direction of Huasi Agricultural i.e., Huasi Agricultural and Shenzhen Transsion go up and down completely randomly.
Pair Corralation between Huasi Agricultural and Shenzhen Transsion
Assuming the 90 days trading horizon Huasi Agricultural Development is expected to generate 0.64 times more return on investment than Shenzhen Transsion. However, Huasi Agricultural Development is 1.55 times less risky than Shenzhen Transsion. It trades about 0.22 of its potential returns per unit of risk. Shenzhen Transsion Holdings is currently generating about 0.02 per unit of risk. If you would invest 312.00 in Huasi Agricultural Development on August 25, 2024 and sell it today you would earn a total of 91.00 from holding Huasi Agricultural Development or generate 29.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huasi Agricultural Development vs. Shenzhen Transsion Holdings
Performance |
| Timeline |
| Huasi Agricultural |
| Shenzhen Transsion |
Huasi Agricultural and Shenzhen Transsion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huasi Agricultural and Shenzhen Transsion
The main advantage of trading using opposite Huasi Agricultural and Shenzhen Transsion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huasi Agricultural position performs unexpectedly, Shenzhen Transsion 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 Shenzhen Transsion will offset losses from the drop in Shenzhen Transsion's long position.| Huasi Agricultural vs. Chengtun Mining Group | Huasi Agricultural vs. China Satellite Communications | Huasi Agricultural vs. Xinjiang Baodi Mining | Huasi Agricultural vs. Uroica Mining Safety |
| Shenzhen Transsion vs. Guangzhou Automobile Group | Shenzhen Transsion vs. Huasi Agricultural Development | Shenzhen Transsion vs. Sinomach General Machinery | Shenzhen Transsion vs. Lutian Machinery 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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