Correlation Between Hualan Group and Shenzhen MYS
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By analyzing existing cross correlation between Hualan Group Co and Shenzhen MYS Environmental, you can compare the effects of market volatilities on Hualan Group and Shenzhen MYS 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 Hualan Group with a short position of Shenzhen MYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hualan Group and Shenzhen MYS.
Diversification Opportunities for Hualan Group and Shenzhen MYS
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hualan and Shenzhen is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Hualan Group Co and Shenzhen MYS Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen MYS Environ and Hualan Group 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 Hualan Group Co are associated (or correlated) with Shenzhen MYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen MYS Environ has no effect on the direction of Hualan Group i.e., Hualan Group and Shenzhen MYS go up and down completely randomly.
Pair Corralation between Hualan Group and Shenzhen MYS
Assuming the 90 days trading horizon Hualan Group Co is expected to generate 1.37 times more return on investment than Shenzhen MYS. However, Hualan Group is 1.37 times more volatile than Shenzhen MYS Environmental. It trades about 0.18 of its potential returns per unit of risk. Shenzhen MYS Environmental is currently generating about 0.14 per unit of risk. If you would invest 736.00 in Hualan Group Co on November 3, 2024 and sell it today you would earn a total of 963.00 from holding Hualan Group Co or generate 130.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hualan Group Co vs. Shenzhen MYS Environmental
Performance |
| Timeline |
| Hualan Group |
| Shenzhen MYS Environ |
Hualan Group and Shenzhen MYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hualan Group and Shenzhen MYS
The main advantage of trading using opposite Hualan Group and Shenzhen MYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hualan Group position performs unexpectedly, Shenzhen MYS 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 MYS will offset losses from the drop in Shenzhen MYS's long position.| Hualan Group vs. HeNan Splendor Science | Hualan Group vs. Hainan Haiqi Transportation | Hualan Group vs. Shuhua Sports Co | Hualan Group vs. Shenzhen Urban Transport |
| Shenzhen MYS vs. Zijin Mining Group | Shenzhen MYS vs. Wanhua Chemical Group | Shenzhen MYS vs. Baoshan Iron Steel | Shenzhen MYS vs. Shandong Gold Mining |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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