Correlation Between Shenzhen Glory and Hunan Tyen
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By analyzing existing cross correlation between Shenzhen Glory Medical and Hunan Tyen Machinery, you can compare the effects of market volatilities on Shenzhen Glory and Hunan Tyen 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 Glory with a short position of Hunan Tyen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Glory and Hunan Tyen.
Diversification Opportunities for Shenzhen Glory and Hunan Tyen
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Hunan is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Glory Medical and Hunan Tyen Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Tyen Machinery and Shenzhen Glory 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 Glory Medical are associated (or correlated) with Hunan Tyen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Tyen Machinery has no effect on the direction of Shenzhen Glory i.e., Shenzhen Glory and Hunan Tyen go up and down completely randomly.
Pair Corralation between Shenzhen Glory and Hunan Tyen
Assuming the 90 days trading horizon Shenzhen Glory is expected to generate 2.26 times less return on investment than Hunan Tyen. But when comparing it to its historical volatility, Shenzhen Glory Medical is 1.13 times less risky than Hunan Tyen. It trades about 0.03 of its potential returns per unit of risk. Hunan Tyen Machinery is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 407.00 in Hunan Tyen Machinery on October 12, 2024 and sell it today you would earn a total of 100.00 from holding Hunan Tyen Machinery or generate 24.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Glory Medical vs. Hunan Tyen Machinery
Performance |
| Timeline |
| Shenzhen Glory Medical |
| Hunan Tyen Machinery |
Shenzhen Glory and Hunan Tyen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Glory and Hunan Tyen
The main advantage of trading using opposite Shenzhen Glory and Hunan Tyen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Glory position performs unexpectedly, Hunan Tyen 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 Hunan Tyen will offset losses from the drop in Hunan Tyen's long position.| Shenzhen Glory vs. Advanced Technology Materials | Shenzhen Glory vs. Vohringer Home Technology | Shenzhen Glory vs. Western Metal Materials | Shenzhen Glory vs. Shanghai Phichem Material |
| Hunan Tyen vs. Postal Savings Bank | Hunan Tyen vs. Chengdu Spaceon Electronics | Hunan Tyen vs. Ningbo Tech Bank Co | Hunan Tyen vs. Xiamen Bank 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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