Correlation Between HUAQIN TECHNOLOGY and Shengyi Technology
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By analyzing existing cross correlation between HUAQIN TECHNOLOGY LTD and Shengyi Technology Co, you can compare the effects of market volatilities on HUAQIN TECHNOLOGY and Shengyi Technology 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 HUAQIN TECHNOLOGY with a short position of Shengyi Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUAQIN TECHNOLOGY and Shengyi Technology.
Diversification Opportunities for HUAQIN TECHNOLOGY and Shengyi Technology
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between HUAQIN and Shengyi is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding HUAQIN TECHNOLOGY LTD and Shengyi Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengyi Technology and HUAQIN TECHNOLOGY 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 HUAQIN TECHNOLOGY LTD are associated (or correlated) with Shengyi Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengyi Technology has no effect on the direction of HUAQIN TECHNOLOGY i.e., HUAQIN TECHNOLOGY and Shengyi Technology go up and down completely randomly.
Pair Corralation between HUAQIN TECHNOLOGY and Shengyi Technology
Assuming the 90 days trading horizon HUAQIN TECHNOLOGY LTD is expected to generate 1.25 times more return on investment than Shengyi Technology. However, HUAQIN TECHNOLOGY is 1.25 times more volatile than Shengyi Technology Co. It trades about 0.19 of its potential returns per unit of risk. Shengyi Technology Co is currently generating about -0.01 per unit of risk. If you would invest 5,640 in HUAQIN TECHNOLOGY LTD on September 3, 2024 and sell it today you would earn a total of 615.00 from holding HUAQIN TECHNOLOGY LTD or generate 10.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUAQIN TECHNOLOGY LTD vs. Shengyi Technology Co
Performance |
| Timeline |
| HUAQIN TECHNOLOGY LTD |
| Shengyi Technology |
HUAQIN TECHNOLOGY and Shengyi Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUAQIN TECHNOLOGY and Shengyi Technology
The main advantage of trading using opposite HUAQIN TECHNOLOGY and Shengyi Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUAQIN TECHNOLOGY position performs unexpectedly, Shengyi Technology 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 Shengyi Technology will offset losses from the drop in Shengyi Technology's long position.| HUAQIN TECHNOLOGY vs. Industrial and Commercial | HUAQIN TECHNOLOGY vs. Kweichow Moutai Co | HUAQIN TECHNOLOGY vs. Agricultural Bank of | HUAQIN TECHNOLOGY vs. China Mobile Limited |
| Shengyi Technology vs. Easyhome New Retail | Shengyi Technology vs. Yingde Greatchem Chemicals | Shengyi Technology vs. Ningxia Younglight Chemicals | Shengyi Technology vs. Beijing Jiaman Dress |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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