Correlation Between Hainan Shuangcheng and Hunan Tyen
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By analyzing existing cross correlation between Hainan Shuangcheng Pharmaceut and Hunan Tyen Machinery, you can compare the effects of market volatilities on Hainan Shuangcheng 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 Hainan Shuangcheng with a short position of Hunan Tyen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Shuangcheng and Hunan Tyen.
Diversification Opportunities for Hainan Shuangcheng and Hunan Tyen
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hainan and Hunan is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Shuangcheng Pharmaceut 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 Hainan Shuangcheng 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 Hainan Shuangcheng Pharmaceut 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 Hainan Shuangcheng i.e., Hainan Shuangcheng and Hunan Tyen go up and down completely randomly.
Pair Corralation between Hainan Shuangcheng and Hunan Tyen
Assuming the 90 days trading horizon Hainan Shuangcheng Pharmaceut is expected to generate 1.44 times more return on investment than Hunan Tyen. However, Hainan Shuangcheng is 1.44 times more volatile than Hunan Tyen Machinery. It trades about 0.08 of its potential returns per unit of risk. Hunan Tyen Machinery is currently generating about 0.01 per unit of risk. If you would invest 813.00 in Hainan Shuangcheng Pharmaceut on August 25, 2024 and sell it today you would earn a total of 1,896 from holding Hainan Shuangcheng Pharmaceut or generate 233.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Hainan Shuangcheng Pharmaceut vs. Hunan Tyen Machinery
Performance |
| Timeline |
| Hainan Shuangcheng |
| Hunan Tyen Machinery |
Hainan Shuangcheng and Hunan Tyen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Shuangcheng and Hunan Tyen
The main advantage of trading using opposite Hainan Shuangcheng and Hunan Tyen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Shuangcheng 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.| Hainan Shuangcheng vs. China State Construction | Hainan Shuangcheng vs. Poly Real Estate | Hainan Shuangcheng vs. China Vanke Co | Hainan Shuangcheng vs. China Merchants Shekou |
| Hunan Tyen vs. Jinling Hotel Corp | Hunan Tyen vs. BTG Hotels Group | Hunan Tyen vs. Epoxy Base Electronic | Hunan Tyen vs. Fiberhome Telecommunication Technologies |
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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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