Correlation Between Fujian Oriental and Henan Shuanghui
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By analyzing existing cross correlation between Fujian Oriental Silver and Henan Shuanghui Investment, you can compare the effects of market volatilities on Fujian Oriental and Henan Shuanghui 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 Fujian Oriental with a short position of Henan Shuanghui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Oriental and Henan Shuanghui.
Diversification Opportunities for Fujian Oriental and Henan Shuanghui
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fujian and Henan is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Oriental Silver and Henan Shuanghui Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Shuanghui Inve and Fujian Oriental 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 Fujian Oriental Silver are associated (or correlated) with Henan Shuanghui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Shuanghui Inve has no effect on the direction of Fujian Oriental i.e., Fujian Oriental and Henan Shuanghui go up and down completely randomly.
Pair Corralation between Fujian Oriental and Henan Shuanghui
Assuming the 90 days trading horizon Fujian Oriental Silver is expected to under-perform the Henan Shuanghui. In addition to that, Fujian Oriental is 3.5 times more volatile than Henan Shuanghui Investment. It trades about -0.15 of its total potential returns per unit of risk. Henan Shuanghui Investment is currently generating about 0.12 per unit of volatility. If you would invest 2,567 in Henan Shuanghui Investment on November 5, 2024 and sell it today you would earn a total of 69.00 from holding Henan Shuanghui Investment or generate 2.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Oriental Silver vs. Henan Shuanghui Investment
Performance |
| Timeline |
| Fujian Oriental Silver |
| Henan Shuanghui Inve |
Fujian Oriental and Henan Shuanghui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Oriental and Henan Shuanghui
The main advantage of trading using opposite Fujian Oriental and Henan Shuanghui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Oriental position performs unexpectedly, Henan Shuanghui 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 Henan Shuanghui will offset losses from the drop in Henan Shuanghui's long position.| Fujian Oriental vs. Wintao Communications Co | Fujian Oriental vs. Guangzhou Haige Communications | Fujian Oriental vs. CICT Mobile Communication | Fujian Oriental vs. Changchun BCHT Biotechnology |
| Henan Shuanghui vs. Qingdao Choho Industrial | Henan Shuanghui vs. Jiangsu Yanghe Brewery | Henan Shuanghui vs. Citic Offshore Helicopter | Henan Shuanghui vs. Chongqing Brewery 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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