Correlation Between XiaMen HongXin and Henan Shuanghui
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By analyzing existing cross correlation between XiaMen HongXin Electron tech and Henan Shuanghui Investment, you can compare the effects of market volatilities on XiaMen HongXin and Henan Shuanghui 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 XiaMen HongXin with a short position of Henan Shuanghui. Check out your portfolio center. Please also check ongoing floating volatility patterns of XiaMen HongXin and Henan Shuanghui.
Diversification Opportunities for XiaMen HongXin and Henan Shuanghui
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between XiaMen and Henan is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding XiaMen HongXin Electron tech and Henan Shuanghui Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Shuanghui Inve and XiaMen HongXin 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 XiaMen HongXin Electron tech are associated (or correlated) with Henan Shuanghui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Shuanghui Inve has no effect on the direction of XiaMen HongXin i.e., XiaMen HongXin and Henan Shuanghui go up and down completely randomly.
Pair Corralation between XiaMen HongXin and Henan Shuanghui
Assuming the 90 days trading horizon XiaMen HongXin Electron tech is expected to generate 3.9 times more return on investment than Henan Shuanghui. However, XiaMen HongXin is 3.9 times more volatile than Henan Shuanghui Investment. It trades about 0.06 of its potential returns per unit of risk. Henan Shuanghui Investment is currently generating about 0.07 per unit of risk. If you would invest 2,072 in XiaMen HongXin Electron tech on November 4, 2024 and sell it today you would earn a total of 75.00 from holding XiaMen HongXin Electron tech or generate 3.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XiaMen HongXin Electron tech vs. Henan Shuanghui Investment
Performance |
| Timeline |
| XiaMen HongXin Electron |
| Henan Shuanghui Inve |
XiaMen HongXin and Henan Shuanghui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XiaMen HongXin and Henan Shuanghui
The main advantage of trading using opposite XiaMen HongXin and Henan Shuanghui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XiaMen HongXin position performs unexpectedly, Henan Shuanghui 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 Henan Shuanghui will offset losses from the drop in Henan Shuanghui's long position.| XiaMen HongXin vs. Allwin Telecommunication Co | XiaMen HongXin vs. Bank of Communications | XiaMen HongXin vs. State Grid InformationCommunication | XiaMen HongXin vs. Bomesc Offshore Engineering |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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