Correlation Between Ye Chiu and Shenzhen Hifuture
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By analyzing existing cross correlation between Ye Chiu Metal and Shenzhen Hifuture Electric, you can compare the effects of market volatilities on Ye Chiu and Shenzhen Hifuture 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 Ye Chiu with a short position of Shenzhen Hifuture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Shenzhen Hifuture.
Diversification Opportunities for Ye Chiu and Shenzhen Hifuture
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 601388 and Shenzhen is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal and Shenzhen Hifuture Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Hifuture and Ye Chiu 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 Ye Chiu Metal are associated (or correlated) with Shenzhen Hifuture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Hifuture has no effect on the direction of Ye Chiu i.e., Ye Chiu and Shenzhen Hifuture go up and down completely randomly.
Pair Corralation between Ye Chiu and Shenzhen Hifuture
Assuming the 90 days trading horizon Ye Chiu is expected to generate 2.43 times less return on investment than Shenzhen Hifuture. But when comparing it to its historical volatility, Ye Chiu Metal is 1.19 times less risky than Shenzhen Hifuture. It trades about 0.16 of its potential returns per unit of risk. Shenzhen Hifuture Electric is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 272.00 in Shenzhen Hifuture Electric on September 15, 2024 and sell it today you would earn a total of 57.00 from holding Shenzhen Hifuture Electric or generate 20.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ye Chiu Metal vs. Shenzhen Hifuture Electric
Performance |
| Timeline |
| Ye Chiu Metal |
| Shenzhen Hifuture |
Ye Chiu and Shenzhen Hifuture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Shenzhen Hifuture
The main advantage of trading using opposite Ye Chiu and Shenzhen Hifuture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu position performs unexpectedly, Shenzhen Hifuture 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 Shenzhen Hifuture will offset losses from the drop in Shenzhen Hifuture's long position.| Ye Chiu vs. Zijin Mining Group | Ye Chiu vs. Wanhua Chemical Group | Ye Chiu vs. Baoshan Iron Steel | Ye Chiu vs. Shandong Gold Mining |
| Shenzhen Hifuture vs. Hubei Geoway Investment | Shenzhen Hifuture vs. Ningbo Thermal Power | Shenzhen Hifuture vs. Xinjiang Baodi Mining | Shenzhen Hifuture vs. Ye Chiu Metal |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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