Correlation Between HUAQIN TECHNOLOGY and Shanghai Shibei
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By analyzing existing cross correlation between HUAQIN TECHNOLOGY LTD and Shanghai Shibei Hi Tech, you can compare the effects of market volatilities on HUAQIN TECHNOLOGY and Shanghai Shibei 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 Shanghai Shibei. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUAQIN TECHNOLOGY and Shanghai Shibei.
Diversification Opportunities for HUAQIN TECHNOLOGY and Shanghai Shibei
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HUAQIN and Shanghai is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding HUAQIN TECHNOLOGY LTD and Shanghai Shibei Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Shibei Hi 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 Shanghai Shibei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Shibei Hi has no effect on the direction of HUAQIN TECHNOLOGY i.e., HUAQIN TECHNOLOGY and Shanghai Shibei go up and down completely randomly.
Pair Corralation between HUAQIN TECHNOLOGY and Shanghai Shibei
Assuming the 90 days trading horizon HUAQIN TECHNOLOGY LTD is expected to generate 0.96 times more return on investment than Shanghai Shibei. However, HUAQIN TECHNOLOGY LTD is 1.04 times less risky than Shanghai Shibei. It trades about 0.13 of its potential returns per unit of risk. Shanghai Shibei Hi Tech is currently generating about -0.04 per unit of risk. If you would invest 6,255 in HUAQIN TECHNOLOGY LTD on October 30, 2024 and sell it today you would earn a total of 1,196 from holding HUAQIN TECHNOLOGY LTD or generate 19.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUAQIN TECHNOLOGY LTD vs. Shanghai Shibei Hi Tech
Performance |
| Timeline |
| HUAQIN TECHNOLOGY LTD |
| Shanghai Shibei Hi |
HUAQIN TECHNOLOGY and Shanghai Shibei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUAQIN TECHNOLOGY and Shanghai Shibei
The main advantage of trading using opposite HUAQIN TECHNOLOGY and Shanghai Shibei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUAQIN TECHNOLOGY position performs unexpectedly, Shanghai Shibei 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 Shanghai Shibei will offset losses from the drop in Shanghai Shibei's long position.| HUAQIN TECHNOLOGY vs. Sportsoul Co Ltd | HUAQIN TECHNOLOGY vs. Beijing Mainstreets Investment | HUAQIN TECHNOLOGY vs. Do Fluoride Chemicals Co | HUAQIN TECHNOLOGY vs. Henan Shuanghui Investment |
| Shanghai Shibei vs. Agricultural Bank of | Shanghai Shibei vs. Industrial and Commercial | Shanghai Shibei vs. Bank of China | Shanghai Shibei vs. China Construction Bank |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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