Correlation Between Shanghai Material and Henan Shuanghui
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By analyzing existing cross correlation between Shanghai Material Trading and Henan Shuanghui Investment, you can compare the effects of market volatilities on Shanghai Material 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 Shanghai Material with a short position of Henan Shuanghui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Material and Henan Shuanghui.
Diversification Opportunities for Shanghai Material and Henan Shuanghui
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shanghai and Henan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Material Trading 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 Shanghai Material 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 Material Trading 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 Shanghai Material i.e., Shanghai Material and Henan Shuanghui go up and down completely randomly.
Pair Corralation between Shanghai Material and Henan Shuanghui
Assuming the 90 days trading horizon Shanghai Material Trading is expected to generate 2.65 times more return on investment than Henan Shuanghui. However, Shanghai Material is 2.65 times more volatile than Henan Shuanghui Investment. It trades about 0.03 of its potential returns per unit of risk. Henan Shuanghui Investment is currently generating about 0.03 per unit of risk. If you would invest 811.00 in Shanghai Material Trading on October 12, 2024 and sell it today you would earn a total of 143.00 from holding Shanghai Material Trading or generate 17.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Material Trading vs. Henan Shuanghui Investment
Performance |
| Timeline |
| Shanghai Material Trading |
| Henan Shuanghui Inve |
Shanghai Material and Henan Shuanghui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Material and Henan Shuanghui
The main advantage of trading using opposite Shanghai Material and Henan Shuanghui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Material 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.| Shanghai Material vs. Ping An Insurance | Shanghai Material vs. Shenzhen Noposion Agrochemicals | Shanghai Material vs. Porton Fine Chemicals | Shanghai Material vs. Beijing Bewinner Communications |
| Henan Shuanghui vs. Konfoong Materials International | Henan Shuanghui vs. Suzhou Xingye Material | Henan Shuanghui vs. Sportsoul Co Ltd | Henan Shuanghui vs. Thinkingdom Media Group |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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