Correlation Between Shanghai Jinfeng and Huizhou Speed
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By analyzing existing cross correlation between Shanghai Jinfeng Wine and Huizhou Speed Wireless, you can compare the effects of market volatilities on Shanghai Jinfeng and Huizhou Speed 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 Huizhou Speed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Jinfeng and Huizhou Speed.
Diversification Opportunities for Shanghai Jinfeng and Huizhou Speed
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shanghai and Huizhou is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Jinfeng Wine and Huizhou Speed Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huizhou Speed Wireless 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 Huizhou Speed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huizhou Speed Wireless has no effect on the direction of Shanghai Jinfeng i.e., Shanghai Jinfeng and Huizhou Speed go up and down completely randomly.
Pair Corralation between Shanghai Jinfeng and Huizhou Speed
Assuming the 90 days trading horizon Shanghai Jinfeng Wine is expected to under-perform the Huizhou Speed. In addition to that, Shanghai Jinfeng is 1.19 times more volatile than Huizhou Speed Wireless. It trades about -0.42 of its total potential returns per unit of risk. Huizhou Speed Wireless is currently generating about -0.37 per unit of volatility. If you would invest 1,538 in Huizhou Speed Wireless on October 14, 2024 and sell it today you would lose (338.00) from holding Huizhou Speed Wireless or give up 21.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Jinfeng Wine vs. Huizhou Speed Wireless
Performance |
| Timeline |
| Shanghai Jinfeng Wine |
| Huizhou Speed Wireless |
Shanghai Jinfeng and Huizhou Speed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Jinfeng and Huizhou Speed
The main advantage of trading using opposite Shanghai Jinfeng and Huizhou Speed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Jinfeng position performs unexpectedly, Huizhou Speed 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 Huizhou Speed will offset losses from the drop in Huizhou Speed's long position.| Shanghai Jinfeng vs. Mingchen Health Co | Shanghai Jinfeng vs. Jinling Hotel Corp | Shanghai Jinfeng vs. AVIC Fund Management | Shanghai Jinfeng vs. Meinian Onehealth Healthcare |
| Huizhou Speed vs. Anhui Gujing Distillery | Huizhou Speed vs. Shanghai Jinfeng Wine | Huizhou Speed vs. Nanjing Vishee Medical | Huizhou Speed vs. Easyhome New Retail |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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