Correlation Between Huaneng Lancang and Shenzhen Fortune
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By analyzing existing cross correlation between Huaneng Lancang River and Shenzhen Fortune Trend, you can compare the effects of market volatilities on Huaneng Lancang and Shenzhen Fortune 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 Huaneng Lancang with a short position of Shenzhen Fortune. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaneng Lancang and Shenzhen Fortune.
Diversification Opportunities for Huaneng Lancang and Shenzhen Fortune
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Huaneng and Shenzhen is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Huaneng Lancang River and Shenzhen Fortune Trend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Fortune Trend and Huaneng Lancang 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 Huaneng Lancang River are associated (or correlated) with Shenzhen Fortune. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Fortune Trend has no effect on the direction of Huaneng Lancang i.e., Huaneng Lancang and Shenzhen Fortune go up and down completely randomly.
Pair Corralation between Huaneng Lancang and Shenzhen Fortune
Assuming the 90 days trading horizon Huaneng Lancang is expected to generate 3.8 times less return on investment than Shenzhen Fortune. But when comparing it to its historical volatility, Huaneng Lancang River is 3.79 times less risky than Shenzhen Fortune. It trades about 0.06 of its potential returns per unit of risk. Shenzhen Fortune Trend is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 6,415 in Shenzhen Fortune Trend on August 28, 2024 and sell it today you would earn a total of 9,730 from holding Shenzhen Fortune Trend or generate 151.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaneng Lancang River vs. Shenzhen Fortune Trend
Performance |
| Timeline |
| Huaneng Lancang River |
| Shenzhen Fortune Trend |
Huaneng Lancang and Shenzhen Fortune Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaneng Lancang and Shenzhen Fortune
The main advantage of trading using opposite Huaneng Lancang and Shenzhen Fortune positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaneng Lancang position performs unexpectedly, Shenzhen Fortune 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 Fortune will offset losses from the drop in Shenzhen Fortune's long position.| Huaneng Lancang vs. Ningxia Younglight Chemicals | Huaneng Lancang vs. Industrial Bank Co | Huaneng Lancang vs. Xiamen Bank Co | Huaneng Lancang vs. China Everbright Bank |
| Shenzhen Fortune vs. Agricultural Bank of | Shenzhen Fortune vs. Industrial and Commercial | Shenzhen Fortune vs. Bank of China | Shenzhen Fortune vs. PetroChina Co Ltd |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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