Correlation Between Hunan Fangsheng and Shanghai Shuixing
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By analyzing existing cross correlation between Hunan Fangsheng Pharm and Shanghai Shuixing Home, you can compare the effects of market volatilities on Hunan Fangsheng and Shanghai Shuixing 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 Hunan Fangsheng with a short position of Shanghai Shuixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Fangsheng and Shanghai Shuixing.
Diversification Opportunities for Hunan Fangsheng and Shanghai Shuixing
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hunan and Shanghai is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Fangsheng Pharm and Shanghai Shuixing Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Shuixing Home and Hunan Fangsheng 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 Hunan Fangsheng Pharm are associated (or correlated) with Shanghai Shuixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Shuixing Home has no effect on the direction of Hunan Fangsheng i.e., Hunan Fangsheng and Shanghai Shuixing go up and down completely randomly.
Pair Corralation between Hunan Fangsheng and Shanghai Shuixing
Assuming the 90 days trading horizon Hunan Fangsheng Pharm is expected to generate 0.88 times more return on investment than Shanghai Shuixing. However, Hunan Fangsheng Pharm is 1.14 times less risky than Shanghai Shuixing. It trades about -0.15 of its potential returns per unit of risk. Shanghai Shuixing Home is currently generating about -0.18 per unit of risk. If you would invest 1,026 in Hunan Fangsheng Pharm on November 3, 2024 and sell it today you would lose (73.00) from holding Hunan Fangsheng Pharm or give up 7.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Fangsheng Pharm vs. Shanghai Shuixing Home
Performance |
| Timeline |
| Hunan Fangsheng Pharm |
| Shanghai Shuixing Home |
Hunan Fangsheng and Shanghai Shuixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Fangsheng and Shanghai Shuixing
The main advantage of trading using opposite Hunan Fangsheng and Shanghai Shuixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Fangsheng position performs unexpectedly, Shanghai Shuixing 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 Shuixing will offset losses from the drop in Shanghai Shuixing's long position.| Hunan Fangsheng vs. Eastroc Beverage Group | Hunan Fangsheng vs. Tonghua Grape Wine | Hunan Fangsheng vs. HanS Laser Tech | Hunan Fangsheng vs. Sharetronic Data Technology |
| Shanghai Shuixing vs. Beijing Mainstreets Investment | Shanghai Shuixing vs. Shanghai Jinfeng Wine | Shanghai Shuixing vs. Zhongrun Resources Investment | Shanghai Shuixing vs. Bingo Software 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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