Correlation Between Shanghai Shuixing and HeNan Splendor
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By analyzing existing cross correlation between Shanghai Shuixing Home and HeNan Splendor Science, you can compare the effects of market volatilities on Shanghai Shuixing and HeNan Splendor 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 Shanghai Shuixing with a short position of HeNan Splendor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Shuixing and HeNan Splendor.
Diversification Opportunities for Shanghai Shuixing and HeNan Splendor
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shanghai and HeNan is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Shuixing Home and HeNan Splendor Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HeNan Splendor Science and Shanghai Shuixing 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 Shanghai Shuixing Home are associated (or correlated) with HeNan Splendor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HeNan Splendor Science has no effect on the direction of Shanghai Shuixing i.e., Shanghai Shuixing and HeNan Splendor go up and down completely randomly.
Pair Corralation between Shanghai Shuixing and HeNan Splendor
Assuming the 90 days trading horizon Shanghai Shuixing is expected to generate 15.59 times less return on investment than HeNan Splendor. But when comparing it to its historical volatility, Shanghai Shuixing Home is 1.38 times less risky than HeNan Splendor. It trades about 0.01 of its potential returns per unit of risk. HeNan Splendor Science is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 484.00 in HeNan Splendor Science on November 3, 2024 and sell it today you would earn a total of 564.00 from holding HeNan Splendor Science or generate 116.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Shuixing Home vs. HeNan Splendor Science
Performance |
| Timeline |
| Shanghai Shuixing Home |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| HeNan Splendor Science |
Shanghai Shuixing and HeNan Splendor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Shuixing and HeNan Splendor
The main advantage of trading using opposite Shanghai Shuixing and HeNan Splendor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Shuixing position performs unexpectedly, HeNan Splendor 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 HeNan Splendor will offset losses from the drop in HeNan Splendor's long position.| Shanghai Shuixing vs. Beijing Mainstreets Investment | Shanghai Shuixing vs. Shanghai Jinfeng Wine | Shanghai Shuixing vs. Zhongrun Resources Investment | Shanghai Shuixing vs. Bingo Software Co |
| HeNan Splendor vs. Suzhou Oriental Semiconductor | HeNan Splendor vs. Emdoor Information Co | HeNan Splendor vs. Invengo Information Technology | HeNan Splendor vs. Bonree Data Technology |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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