Correlation Between Senci Electric and Huasi Agricultural
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By analyzing existing cross correlation between Senci Electric Machinery and Huasi Agricultural Development, you can compare the effects of market volatilities on Senci Electric and Huasi Agricultural 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 Senci Electric with a short position of Huasi Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senci Electric and Huasi Agricultural.
Diversification Opportunities for Senci Electric and Huasi Agricultural
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Senci and Huasi is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Senci Electric Machinery and Huasi Agricultural Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huasi Agricultural and Senci Electric 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 Senci Electric Machinery are associated (or correlated) with Huasi Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huasi Agricultural has no effect on the direction of Senci Electric i.e., Senci Electric and Huasi Agricultural go up and down completely randomly.
Pair Corralation between Senci Electric and Huasi Agricultural
Assuming the 90 days trading horizon Senci Electric Machinery is expected to generate 0.91 times more return on investment than Huasi Agricultural. However, Senci Electric Machinery is 1.1 times less risky than Huasi Agricultural. It trades about 0.17 of its potential returns per unit of risk. Huasi Agricultural Development is currently generating about 0.04 per unit of risk. If you would invest 1,651 in Senci Electric Machinery on November 5, 2024 and sell it today you would earn a total of 108.00 from holding Senci Electric Machinery or generate 6.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Senci Electric Machinery vs. Huasi Agricultural Development
Performance |
| Timeline |
| Senci Electric Machinery |
| Huasi Agricultural |
Senci Electric and Huasi Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senci Electric and Huasi Agricultural
The main advantage of trading using opposite Senci Electric and Huasi Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senci Electric position performs unexpectedly, Huasi Agricultural 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 Huasi Agricultural will offset losses from the drop in Huasi Agricultural's long position.| Senci Electric vs. Shenzhen MYS Environmental | Senci Electric vs. Runjian Communication Co | Senci Electric vs. Wuhan Yangtze Communication | Senci Electric vs. City Development Environment |
| Huasi Agricultural vs. Shanghai Jinfeng Wine | Huasi Agricultural vs. CICT Mobile Communication | Huasi Agricultural vs. Anhui Gujing Distillery | Huasi Agricultural vs. Wintao Communications 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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