Correlation Between Hang Xiao and Shanghai Jinfeng
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hang Xiao Steel and Shanghai Jinfeng Wine, you can compare the effects of market volatilities on Hang Xiao and Shanghai Jinfeng 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 Hang Xiao with a short position of Shanghai Jinfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hang Xiao and Shanghai Jinfeng.
Diversification Opportunities for Hang Xiao and Shanghai Jinfeng
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hang and Shanghai is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Hang Xiao Steel and Shanghai Jinfeng Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jinfeng Wine and Hang Xiao 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 Hang Xiao Steel are associated (or correlated) with Shanghai Jinfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jinfeng Wine has no effect on the direction of Hang Xiao i.e., Hang Xiao and Shanghai Jinfeng go up and down completely randomly.
Pair Corralation between Hang Xiao and Shanghai Jinfeng
Assuming the 90 days trading horizon Hang Xiao is expected to generate 16.94 times less return on investment than Shanghai Jinfeng. But when comparing it to its historical volatility, Hang Xiao Steel is 1.48 times less risky than Shanghai Jinfeng. It trades about 0.02 of its potential returns per unit of risk. Shanghai Jinfeng Wine is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 554.00 in Shanghai Jinfeng Wine on September 13, 2024 and sell it today you would earn a total of 107.00 from holding Shanghai Jinfeng Wine or generate 19.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hang Xiao Steel vs. Shanghai Jinfeng Wine
Performance |
| Timeline |
| Hang Xiao Steel |
| Shanghai Jinfeng Wine |
Hang Xiao and Shanghai Jinfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hang Xiao and Shanghai Jinfeng
The main advantage of trading using opposite Hang Xiao and Shanghai Jinfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hang Xiao position performs unexpectedly, Shanghai Jinfeng 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 Jinfeng will offset losses from the drop in Shanghai Jinfeng's long position.| Hang Xiao vs. Sanan Optoelectronics Co | Hang Xiao vs. Olympic Circuit Technology | Hang Xiao vs. Bomin Electronics Co | Hang Xiao vs. Unigroup Guoxin Microelectronics |
| Shanghai Jinfeng vs. China Life Insurance | Shanghai Jinfeng vs. Cinda Securities Co | Shanghai Jinfeng vs. Piotech Inc A | Shanghai Jinfeng vs. Dongxing Sec 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |