Correlation Between Shandong Huifa and Poly Real
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By analyzing existing cross correlation between Shandong Huifa Foodstuff and Poly Real Estate, you can compare the effects of market volatilities on Shandong Huifa and Poly Real 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 Shandong Huifa with a short position of Poly Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Huifa and Poly Real.
Diversification Opportunities for Shandong Huifa and Poly Real
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and Poly is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Huifa Foodstuff and Poly Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poly Real Estate and Shandong Huifa 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 Shandong Huifa Foodstuff are associated (or correlated) with Poly Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poly Real Estate has no effect on the direction of Shandong Huifa i.e., Shandong Huifa and Poly Real go up and down completely randomly.
Pair Corralation between Shandong Huifa and Poly Real
Assuming the 90 days trading horizon Shandong Huifa Foodstuff is expected to generate 2.28 times more return on investment than Poly Real. However, Shandong Huifa is 2.28 times more volatile than Poly Real Estate. It trades about 0.19 of its potential returns per unit of risk. Poly Real Estate is currently generating about -0.12 per unit of risk. If you would invest 1,002 in Shandong Huifa Foodstuff on September 4, 2024 and sell it today you would earn a total of 169.00 from holding Shandong Huifa Foodstuff or generate 16.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Huifa Foodstuff vs. Poly Real Estate
Performance |
| Timeline |
| Shandong Huifa Foodstuff |
| Poly Real Estate |
Shandong Huifa and Poly Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Huifa and Poly Real
The main advantage of trading using opposite Shandong Huifa and Poly Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Huifa position performs unexpectedly, Poly Real 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 Poly Real will offset losses from the drop in Poly Real's long position.| Shandong Huifa vs. Poly Real Estate | Shandong Huifa vs. China Vanke Co | Shandong Huifa vs. China Merchants Shekou | Shandong Huifa vs. Huafa Industrial Co |
| Poly Real vs. Zhongshan Broad Ocean Motor | Poly Real vs. Hubeiyichang Transportation Group | Poly Real vs. Guizhou BroadcastingTV Info | Poly Real vs. Aurora Optoelectronics 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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