Correlation Between Gansu Yasheng and Shenzhen Hifuture
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By analyzing existing cross correlation between Gansu Yasheng Industrial and Shenzhen Hifuture Electric, you can compare the effects of market volatilities on Gansu Yasheng 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 Gansu Yasheng with a short position of Shenzhen Hifuture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Yasheng and Shenzhen Hifuture.
Diversification Opportunities for Gansu Yasheng and Shenzhen Hifuture
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gansu and Shenzhen is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Yasheng Industrial and Shenzhen Hifuture Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Hifuture and Gansu Yasheng 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 Gansu Yasheng Industrial 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 Gansu Yasheng i.e., Gansu Yasheng and Shenzhen Hifuture go up and down completely randomly.
Pair Corralation between Gansu Yasheng and Shenzhen Hifuture
Assuming the 90 days trading horizon Gansu Yasheng is expected to generate 1.39 times less return on investment than Shenzhen Hifuture. In addition to that, Gansu Yasheng is 1.02 times more volatile than Shenzhen Hifuture Electric. It trades about 0.18 of its total potential returns per unit of risk. Shenzhen Hifuture Electric is currently generating about 0.25 per unit of volatility. If you would invest 273.00 in Shenzhen Hifuture Electric on September 13, 2024 and sell it today you would earn a total of 42.00 from holding Shenzhen Hifuture Electric or generate 15.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Yasheng Industrial vs. Shenzhen Hifuture Electric
Performance |
| Timeline |
| Gansu Yasheng Industrial |
| Shenzhen Hifuture |
Gansu Yasheng and Shenzhen Hifuture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Yasheng and Shenzhen Hifuture
The main advantage of trading using opposite Gansu Yasheng and Shenzhen Hifuture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Yasheng 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.| Gansu Yasheng vs. New China Life | Gansu Yasheng vs. Ming Yang Smart | Gansu Yasheng vs. 159681 | Gansu Yasheng vs. 159005 |
| Shenzhen Hifuture vs. China Nonferrous Metal | Shenzhen Hifuture vs. Xinya Electronic Co | Shenzhen Hifuture vs. Gansu Yasheng Industrial | Shenzhen Hifuture vs. Shenzhen Clou Electronics |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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