Correlation Between Beijing HuaYuanYiTong and Shenyang Huitian
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By analyzing existing cross correlation between Beijing HuaYuanYiTong Thermal and Shenyang Huitian Thermal, you can compare the effects of market volatilities on Beijing HuaYuanYiTong and Shenyang Huitian 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 Beijing HuaYuanYiTong with a short position of Shenyang Huitian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing HuaYuanYiTong and Shenyang Huitian.
Diversification Opportunities for Beijing HuaYuanYiTong and Shenyang Huitian
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and Shenyang is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Beijing HuaYuanYiTong Thermal and Shenyang Huitian Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Huitian Thermal and Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong Thermal are associated (or correlated) with Shenyang Huitian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Huitian Thermal has no effect on the direction of Beijing HuaYuanYiTong i.e., Beijing HuaYuanYiTong and Shenyang Huitian go up and down completely randomly.
Pair Corralation between Beijing HuaYuanYiTong and Shenyang Huitian
Assuming the 90 days trading horizon Beijing HuaYuanYiTong Thermal is expected to generate 1.42 times more return on investment than Shenyang Huitian. However, Beijing HuaYuanYiTong is 1.42 times more volatile than Shenyang Huitian Thermal. It trades about 0.09 of its potential returns per unit of risk. Shenyang Huitian Thermal is currently generating about -0.05 per unit of risk. If you would invest 1,140 in Beijing HuaYuanYiTong Thermal on September 13, 2024 and sell it today you would earn a total of 59.00 from holding Beijing HuaYuanYiTong Thermal or generate 5.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing HuaYuanYiTong Thermal vs. Shenyang Huitian Thermal
Performance |
| Timeline |
| Beijing HuaYuanYiTong |
| Shenyang Huitian Thermal |
Beijing HuaYuanYiTong and Shenyang Huitian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing HuaYuanYiTong and Shenyang Huitian
The main advantage of trading using opposite Beijing HuaYuanYiTong and Shenyang Huitian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing HuaYuanYiTong position performs unexpectedly, Shenyang Huitian 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 Shenyang Huitian will offset losses from the drop in Shenyang Huitian's long position.| Beijing HuaYuanYiTong vs. Ming Yang Smart | Beijing HuaYuanYiTong vs. 159681 | Beijing HuaYuanYiTong vs. 159005 | Beijing HuaYuanYiTong vs. Loctek Ergonomic Technology |
| Shenyang Huitian vs. Zhangjiagang Freetrade Science | Shenyang Huitian vs. Citic Guoan Wine | Shenyang Huitian vs. YiDong Electronics Technology | Shenyang Huitian vs. Success Electronics |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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