Correlation Between Jiangsu Yueda and Shenyang Huitian
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By analyzing existing cross correlation between Jiangsu Yueda Investment and Shenyang Huitian Thermal, you can compare the effects of market volatilities on Jiangsu Yueda and Shenyang Huitian 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 Jiangsu Yueda with a short position of Shenyang Huitian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yueda and Shenyang Huitian.
Diversification Opportunities for Jiangsu Yueda and Shenyang Huitian
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Shenyang is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yueda Investment and Shenyang Huitian Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Huitian Thermal and Jiangsu Yueda 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 Jiangsu Yueda Investment are associated (or correlated) with Shenyang Huitian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Huitian Thermal has no effect on the direction of Jiangsu Yueda i.e., Jiangsu Yueda and Shenyang Huitian go up and down completely randomly.
Pair Corralation between Jiangsu Yueda and Shenyang Huitian
Assuming the 90 days trading horizon Jiangsu Yueda is expected to generate 2.16 times less return on investment than Shenyang Huitian. In addition to that, Jiangsu Yueda is 1.02 times more volatile than Shenyang Huitian Thermal. It trades about 0.03 of its total potential returns per unit of risk. Shenyang Huitian Thermal is currently generating about 0.06 per unit of volatility. If you would invest 296.00 in Shenyang Huitian Thermal on September 14, 2024 and sell it today you would earn a total of 102.00 from holding Shenyang Huitian Thermal or generate 34.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.58% |
| Values | Daily Returns |
Jiangsu Yueda Investment vs. Shenyang Huitian Thermal
Performance |
| Timeline |
| Jiangsu Yueda Investment |
| Shenyang Huitian Thermal |
Jiangsu Yueda and Shenyang Huitian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yueda and Shenyang Huitian
The main advantage of trading using opposite Jiangsu Yueda and Shenyang Huitian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yueda position performs unexpectedly, Shenyang Huitian 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 Shenyang Huitian will offset losses from the drop in Shenyang Huitian's long position.| Jiangsu Yueda vs. Lutian Machinery Co | Jiangsu Yueda vs. China Longyuan Power | Jiangsu Yueda vs. PetroChina Co Ltd | Jiangsu Yueda vs. Bank of China |
| Shenyang Huitian vs. Agricultural Bank of | Shenyang Huitian vs. Industrial and Commercial | Shenyang Huitian vs. Bank of China | Shenyang Huitian vs. PetroChina Co Ltd |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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