Correlation Between Dongfeng Automobile and Shenyang Huitian
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By analyzing existing cross correlation between Dongfeng Automobile Co and Shenyang Huitian Thermal, you can compare the effects of market volatilities on Dongfeng Automobile 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 Dongfeng Automobile with a short position of Shenyang Huitian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongfeng Automobile and Shenyang Huitian.
Diversification Opportunities for Dongfeng Automobile and Shenyang Huitian
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dongfeng and Shenyang is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Dongfeng Automobile Co 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 Dongfeng Automobile 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 Dongfeng Automobile Co 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 Dongfeng Automobile i.e., Dongfeng Automobile and Shenyang Huitian go up and down completely randomly.
Pair Corralation between Dongfeng Automobile and Shenyang Huitian
Assuming the 90 days trading horizon Dongfeng Automobile Co is expected to under-perform the Shenyang Huitian. In addition to that, Dongfeng Automobile is 1.31 times more volatile than Shenyang Huitian Thermal. It trades about -0.07 of its total potential returns per unit of risk. Shenyang Huitian Thermal is currently generating about 0.0 per unit of volatility. If you would invest 338.00 in Shenyang Huitian Thermal on November 4, 2024 and sell it today you would lose (1.00) from holding Shenyang Huitian Thermal or give up 0.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongfeng Automobile Co vs. Shenyang Huitian Thermal
Performance |
| Timeline |
| Dongfeng Automobile |
| Shenyang Huitian Thermal |
Dongfeng Automobile and Shenyang Huitian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongfeng Automobile and Shenyang Huitian
The main advantage of trading using opposite Dongfeng Automobile and Shenyang Huitian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongfeng Automobile 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.| Dongfeng Automobile vs. GRG Banking Equipment | Dongfeng Automobile vs. China Everbright Bank | Dongfeng Automobile vs. Zhejiang Construction Investment | Dongfeng Automobile vs. Shenzhen Topway Video |
| Shenyang Huitian vs. Liaoning Dingjide Petrochemical | Shenyang Huitian vs. Suzhou Weizhixiang Food | Shenyang Huitian vs. New Hope Dairy | Shenyang Huitian vs. Huatian Hotel Group |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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