Correlation Between Yingde Greatchem and Shenzhen Hifuture
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By analyzing existing cross correlation between Yingde Greatchem Chemicals and Shenzhen Hifuture Electric, you can compare the effects of market volatilities on Yingde Greatchem and Shenzhen Hifuture 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 Yingde Greatchem with a short position of Shenzhen Hifuture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yingde Greatchem and Shenzhen Hifuture.
Diversification Opportunities for Yingde Greatchem and Shenzhen Hifuture
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Yingde and Shenzhen is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Yingde Greatchem Chemicals and Shenzhen Hifuture Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Hifuture and Yingde Greatchem 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 Yingde Greatchem Chemicals are associated (or correlated) with Shenzhen Hifuture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Hifuture has no effect on the direction of Yingde Greatchem i.e., Yingde Greatchem and Shenzhen Hifuture go up and down completely randomly.
Pair Corralation between Yingde Greatchem and Shenzhen Hifuture
Assuming the 90 days trading horizon Yingde Greatchem Chemicals is expected to generate 0.7 times more return on investment than Shenzhen Hifuture. However, Yingde Greatchem Chemicals is 1.43 times less risky than Shenzhen Hifuture. It trades about 0.0 of its potential returns per unit of risk. Shenzhen Hifuture Electric is currently generating about -0.32 per unit of risk. If you would invest 2,332 in Yingde Greatchem Chemicals on October 28, 2024 and sell it today you would lose (14.00) from holding Yingde Greatchem Chemicals or give up 0.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yingde Greatchem Chemicals vs. Shenzhen Hifuture Electric
Performance |
| Timeline |
| Yingde Greatchem Che |
| Shenzhen Hifuture |
Yingde Greatchem and Shenzhen Hifuture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yingde Greatchem and Shenzhen Hifuture
The main advantage of trading using opposite Yingde Greatchem and Shenzhen Hifuture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yingde Greatchem position performs unexpectedly, Shenzhen Hifuture 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 Shenzhen Hifuture will offset losses from the drop in Shenzhen Hifuture's long position.| Yingde Greatchem vs. Zijin Mining Group | Yingde Greatchem vs. Wanhua Chemical Group | Yingde Greatchem vs. Baoshan Iron Steel | Yingde Greatchem vs. Shandong Gold Mining |
| Shenzhen Hifuture vs. Lotus Health Group | Shenzhen Hifuture vs. Anhui Huaren Health | Shenzhen Hifuture vs. PKU HealthCare Corp | Shenzhen Hifuture vs. Shandong Sinoglory Health |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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