Correlation Between Datang Telecom and Shenzhen Hifuture
Specify exactly 2 symbols:
By analyzing existing cross correlation between Datang Telecom Technology and Shenzhen Hifuture Electric, you can compare the effects of market volatilities on Datang Telecom 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 Datang Telecom with a short position of Shenzhen Hifuture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Datang Telecom and Shenzhen Hifuture.
Diversification Opportunities for Datang Telecom and Shenzhen Hifuture
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Datang and Shenzhen is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Datang Telecom Technology and Shenzhen Hifuture Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Hifuture and Datang Telecom 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 Datang Telecom Technology 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 Datang Telecom i.e., Datang Telecom and Shenzhen Hifuture go up and down completely randomly.
Pair Corralation between Datang Telecom and Shenzhen Hifuture
Assuming the 90 days trading horizon Datang Telecom Technology is expected to under-perform the Shenzhen Hifuture. In addition to that, Datang Telecom is 1.86 times more volatile than Shenzhen Hifuture Electric. It trades about -0.16 of its total potential returns per unit of risk. Shenzhen Hifuture Electric is currently generating about 0.28 per unit of volatility. If you would invest 242.00 in Shenzhen Hifuture Electric on August 29, 2024 and sell it today you would earn a total of 47.00 from holding Shenzhen Hifuture Electric or generate 19.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Datang Telecom Technology vs. Shenzhen Hifuture Electric
Performance |
| Timeline |
| Datang Telecom Technology |
| Shenzhen Hifuture |
Datang Telecom and Shenzhen Hifuture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Datang Telecom and Shenzhen Hifuture
The main advantage of trading using opposite Datang Telecom and Shenzhen Hifuture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Datang Telecom 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.| Datang Telecom vs. Yuan Longping High tech | Datang Telecom vs. Sinocelltech Group | Datang Telecom vs. Keli Sensing Technology | Datang Telecom vs. Dhc Software Co |
| Shenzhen Hifuture vs. Shanghai Xinhua Media | Shenzhen Hifuture vs. Inly Media Co | Shenzhen Hifuture vs. China Nonferrous Metal | Shenzhen Hifuture vs. Threes Company Media |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |