Correlation Between Shenyang Blue and Hengerda New
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By analyzing existing cross correlation between Shenyang Blue Silver and Hengerda New Materials, you can compare the effects of market volatilities on Shenyang Blue and Hengerda New 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 Shenyang Blue with a short position of Hengerda New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Blue and Hengerda New.
Diversification Opportunities for Shenyang Blue and Hengerda New
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenyang and Hengerda is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Blue Silver and Hengerda New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengerda New Materials and Shenyang Blue 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 Shenyang Blue Silver are associated (or correlated) with Hengerda New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengerda New Materials has no effect on the direction of Shenyang Blue i.e., Shenyang Blue and Hengerda New go up and down completely randomly.
Pair Corralation between Shenyang Blue and Hengerda New
Assuming the 90 days trading horizon Shenyang Blue Silver is expected to generate 1.47 times more return on investment than Hengerda New. However, Shenyang Blue is 1.47 times more volatile than Hengerda New Materials. It trades about 0.06 of its potential returns per unit of risk. Hengerda New Materials is currently generating about 0.0 per unit of risk. If you would invest 935.00 in Shenyang Blue Silver on October 13, 2024 and sell it today you would earn a total of 1,181 from holding Shenyang Blue Silver or generate 126.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Blue Silver vs. Hengerda New Materials
Performance |
| Timeline |
| Shenyang Blue Silver |
| Hengerda New Materials |
Shenyang Blue and Hengerda New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Blue and Hengerda New
The main advantage of trading using opposite Shenyang Blue and Hengerda New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Blue position performs unexpectedly, Hengerda New 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 Hengerda New will offset losses from the drop in Hengerda New's long position.| Shenyang Blue vs. Ye Chiu Metal | Shenyang Blue vs. Shanghai Newtouch Software | Shenyang Blue vs. Guangdong Jingyi Metal | Shenyang Blue vs. Guotai Epoint Software |
| Hengerda New vs. Jonjee Hi tech Industrial | Hengerda New vs. Tibet Huayu Mining | Hengerda New vs. Jiangxi Naipu Mining | Hengerda New vs. Shenyang Blue Silver |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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