Correlation Between Hengdian Entertainment and Sungrow Power
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hengdian Entertainment Co and Sungrow Power Supply, you can compare the effects of market volatilities on Hengdian Entertainment and Sungrow Power 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 Hengdian Entertainment with a short position of Sungrow Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengdian Entertainment and Sungrow Power.
Diversification Opportunities for Hengdian Entertainment and Sungrow Power
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hengdian and Sungrow is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Hengdian Entertainment Co and Sungrow Power Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sungrow Power Supply and Hengdian Entertainment 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 Hengdian Entertainment Co are associated (or correlated) with Sungrow Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sungrow Power Supply has no effect on the direction of Hengdian Entertainment i.e., Hengdian Entertainment and Sungrow Power go up and down completely randomly.
Pair Corralation between Hengdian Entertainment and Sungrow Power
Assuming the 90 days trading horizon Hengdian Entertainment is expected to generate 3.65 times less return on investment than Sungrow Power. But when comparing it to its historical volatility, Hengdian Entertainment Co is 1.04 times less risky than Sungrow Power. It trades about 0.01 of its potential returns per unit of risk. Sungrow Power Supply is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 7,023 in Sungrow Power Supply on September 12, 2024 and sell it today you would earn a total of 828.00 from holding Sungrow Power Supply or generate 11.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengdian Entertainment Co vs. Sungrow Power Supply
Performance |
| Timeline |
| Hengdian Entertainment |
| Sungrow Power Supply |
Hengdian Entertainment and Sungrow Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengdian Entertainment and Sungrow Power
The main advantage of trading using opposite Hengdian Entertainment and Sungrow Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengdian Entertainment position performs unexpectedly, Sungrow Power 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 Sungrow Power will offset losses from the drop in Sungrow Power's long position.The idea behind Hengdian Entertainment Co and Sungrow Power Supply pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Sungrow Power vs. Huafa Industrial Co | Sungrow Power vs. Hengdian Entertainment Co | Sungrow Power vs. Shuhua Sports Co | Sungrow Power vs. Sichuan Yahua Industrial |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |