Correlation Between Huafa Industrial and Shanghai Jin
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By analyzing existing cross correlation between Huafa Industrial Co and Shanghai Jin Jiang, you can compare the effects of market volatilities on Huafa Industrial and Shanghai Jin 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 Huafa Industrial with a short position of Shanghai Jin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huafa Industrial and Shanghai Jin.
Diversification Opportunities for Huafa Industrial and Shanghai Jin
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Huafa and Shanghai is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Huafa Industrial Co and Shanghai Jin Jiang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jin Jiang and Huafa Industrial 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 Huafa Industrial Co are associated (or correlated) with Shanghai Jin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jin Jiang has no effect on the direction of Huafa Industrial i.e., Huafa Industrial and Shanghai Jin go up and down completely randomly.
Pair Corralation between Huafa Industrial and Shanghai Jin
Assuming the 90 days trading horizon Huafa Industrial Co is expected to under-perform the Shanghai Jin. In addition to that, Huafa Industrial is 1.1 times more volatile than Shanghai Jin Jiang. It trades about -0.01 of its total potential returns per unit of risk. Shanghai Jin Jiang is currently generating about 0.08 per unit of volatility. If you would invest 45.00 in Shanghai Jin Jiang on August 26, 2024 and sell it today you would earn a total of 25.00 from holding Shanghai Jin Jiang or generate 55.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huafa Industrial Co vs. Shanghai Jin Jiang
Performance |
| Timeline |
| Huafa Industrial |
| Shanghai Jin Jiang |
Huafa Industrial and Shanghai Jin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huafa Industrial and Shanghai Jin
The main advantage of trading using opposite Huafa Industrial and Shanghai Jin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huafa Industrial position performs unexpectedly, Shanghai Jin 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 Shanghai Jin will offset losses from the drop in Shanghai Jin's long position.| Huafa Industrial vs. Industrial and Commercial | Huafa Industrial vs. China Construction Bank | Huafa Industrial vs. Bank of China | Huafa Industrial vs. Agricultural Bank of |
| Shanghai Jin vs. Holitech Technology Co | Shanghai Jin vs. Shandong Mining Machinery | Shanghai Jin vs. Niutech Environment Technology | Shanghai Jin vs. Hainan Mining Co |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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