Correlation Between Hua Xia and Shenyang Blue
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By analyzing existing cross correlation between Hua Xia Bank and Shenyang Blue Silver, you can compare the effects of market volatilities on Hua Xia and Shenyang Blue 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 Hua Xia with a short position of Shenyang Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hua Xia and Shenyang Blue.
Diversification Opportunities for Hua Xia and Shenyang Blue
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hua and Shenyang is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Hua Xia Bank and Shenyang Blue Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Blue Silver and Hua Xia 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 Hua Xia Bank are associated (or correlated) with Shenyang Blue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Blue Silver has no effect on the direction of Hua Xia i.e., Hua Xia and Shenyang Blue go up and down completely randomly.
Pair Corralation between Hua Xia and Shenyang Blue
Assuming the 90 days trading horizon Hua Xia Bank is expected to under-perform the Shenyang Blue. But the stock apears to be less risky and, when comparing its historical volatility, Hua Xia Bank is 5.56 times less risky than Shenyang Blue. The stock trades about -0.14 of its potential returns per unit of risk. The Shenyang Blue Silver is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 2,327 in Shenyang Blue Silver on December 9, 2024 and sell it today you would earn a total of 343.00 from holding Shenyang Blue Silver or generate 14.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hua Xia Bank vs. Shenyang Blue Silver
Performance |
| Timeline |
| Hua Xia Bank |
| Shenyang Blue Silver |
Hua Xia and Shenyang Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hua Xia and Shenyang Blue
The main advantage of trading using opposite Hua Xia and Shenyang Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hua Xia position performs unexpectedly, Shenyang Blue 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 Blue will offset losses from the drop in Shenyang Blue's long position.| Hua Xia vs. Jiangsu Xinri E Vehicle | ||
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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