Correlation Between Changshu Tongrun and Shenyang Huitian
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By analyzing existing cross correlation between Changshu Tongrun Auto and Shenyang Huitian Thermal, you can compare the effects of market volatilities on Changshu Tongrun 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 Changshu Tongrun with a short position of Shenyang Huitian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changshu Tongrun and Shenyang Huitian.
Diversification Opportunities for Changshu Tongrun and Shenyang Huitian
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Changshu and Shenyang is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Changshu Tongrun Auto 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 Changshu Tongrun 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 Changshu Tongrun Auto 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 Changshu Tongrun i.e., Changshu Tongrun and Shenyang Huitian go up and down completely randomly.
Pair Corralation between Changshu Tongrun and Shenyang Huitian
Assuming the 90 days trading horizon Changshu Tongrun Auto is expected to generate 1.14 times more return on investment than Shenyang Huitian. However, Changshu Tongrun is 1.14 times more volatile than Shenyang Huitian Thermal. It trades about 0.13 of its potential returns per unit of risk. Shenyang Huitian Thermal is currently generating about 0.03 per unit of risk. If you would invest 1,622 in Changshu Tongrun Auto on August 31, 2024 and sell it today you would earn a total of 184.00 from holding Changshu Tongrun Auto or generate 11.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Changshu Tongrun Auto vs. Shenyang Huitian Thermal
Performance |
| Timeline |
| Changshu Tongrun Auto |
| Shenyang Huitian Thermal |
Changshu Tongrun and Shenyang Huitian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changshu Tongrun and Shenyang Huitian
The main advantage of trading using opposite Changshu Tongrun and Shenyang Huitian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changshu Tongrun 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.| Changshu Tongrun vs. Anhui Huaertai Chemical | Changshu Tongrun vs. Invengo Information Technology | Changshu Tongrun vs. Shenzhen Noposion Agrochemicals | Changshu Tongrun vs. Guangzhou Ruoyuchen Information |
| Shenyang Huitian vs. Industrial and Commercial | Shenyang Huitian vs. Kweichow Moutai Co | Shenyang Huitian vs. Agricultural Bank of | Shenyang Huitian vs. China Mobile Limited |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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