Correlation Between Shenzhen Silver and Hunan Investment
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By analyzing existing cross correlation between Shenzhen Silver Basis and Hunan Investment Group, you can compare the effects of market volatilities on Shenzhen Silver and Hunan Investment 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 Silver with a short position of Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Silver and Hunan Investment.
Diversification Opportunities for Shenzhen Silver and Hunan Investment
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Hunan is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Silver Basis and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment and Shenzhen Silver 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 Silver Basis are associated (or correlated) with Hunan Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Investment has no effect on the direction of Shenzhen Silver i.e., Shenzhen Silver and Hunan Investment go up and down completely randomly.
Pair Corralation between Shenzhen Silver and Hunan Investment
Assuming the 90 days trading horizon Shenzhen Silver is expected to generate 4.02 times less return on investment than Hunan Investment. In addition to that, Shenzhen Silver is 1.7 times more volatile than Hunan Investment Group. It trades about 0.01 of its total potential returns per unit of risk. Hunan Investment Group is currently generating about 0.04 per unit of volatility. If you would invest 523.00 in Hunan Investment Group on September 14, 2024 and sell it today you would earn a total of 92.00 from holding Hunan Investment Group or generate 17.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Silver Basis vs. Hunan Investment Group
Performance |
| Timeline |
| Shenzhen Silver Basis |
| Hunan Investment |
Shenzhen Silver and Hunan Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Silver and Hunan Investment
The main advantage of trading using opposite Shenzhen Silver and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Silver position performs unexpectedly, Hunan Investment 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 Investment will offset losses from the drop in Hunan Investment's long position.| Shenzhen Silver vs. Jointo Energy Investment | Shenzhen Silver vs. Harbin Air Conditioning | Shenzhen Silver vs. Harbin Hatou Investment | Shenzhen Silver vs. Jiangsu Yueda Investment |
| Hunan Investment vs. Kweichow Moutai Co | Hunan Investment vs. Jiangsu Pacific Quartz | Hunan Investment vs. Shenzhen Transsion Holdings | Hunan Investment vs. Beijing Roborock Technology |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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