Correlation Between Shanghai Jinfeng and Hithink RoyalFlush
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By analyzing existing cross correlation between Shanghai Jinfeng Wine and Hithink RoyalFlush Info, you can compare the effects of market volatilities on Shanghai Jinfeng and Hithink RoyalFlush 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 Shanghai Jinfeng with a short position of Hithink RoyalFlush. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Jinfeng and Hithink RoyalFlush.
Diversification Opportunities for Shanghai Jinfeng and Hithink RoyalFlush
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Hithink is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Jinfeng Wine and Hithink RoyalFlush Info in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hithink RoyalFlush Info and Shanghai Jinfeng 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 Shanghai Jinfeng Wine are associated (or correlated) with Hithink RoyalFlush. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hithink RoyalFlush Info has no effect on the direction of Shanghai Jinfeng i.e., Shanghai Jinfeng and Hithink RoyalFlush go up and down completely randomly.
Pair Corralation between Shanghai Jinfeng and Hithink RoyalFlush
Assuming the 90 days trading horizon Shanghai Jinfeng Wine is expected to under-perform the Hithink RoyalFlush. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai Jinfeng Wine is 1.74 times less risky than Hithink RoyalFlush. The stock trades about 0.0 of its potential returns per unit of risk. The Hithink RoyalFlush Info is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 16,341 in Hithink RoyalFlush Info on September 12, 2024 and sell it today you would earn a total of 16,359 from holding Hithink RoyalFlush Info or generate 100.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Jinfeng Wine vs. Hithink RoyalFlush Info
Performance |
| Timeline |
| Shanghai Jinfeng Wine |
| Hithink RoyalFlush Info |
Shanghai Jinfeng and Hithink RoyalFlush Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Jinfeng and Hithink RoyalFlush
The main advantage of trading using opposite Shanghai Jinfeng and Hithink RoyalFlush positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Jinfeng position performs unexpectedly, Hithink RoyalFlush 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 Hithink RoyalFlush will offset losses from the drop in Hithink RoyalFlush's long position.| Shanghai Jinfeng vs. China Petroleum Chemical | Shanghai Jinfeng vs. PetroChina Co Ltd | Shanghai Jinfeng vs. China State Construction | Shanghai Jinfeng vs. China Railway Group |
| Hithink RoyalFlush vs. Industrial Bank Co | Hithink RoyalFlush vs. HeNan Splendor Science | Hithink RoyalFlush vs. Ping An Insurance | Hithink RoyalFlush vs. GRG Banking Equipment |
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.
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