Correlation Between Xinya Electronic and Shenzhen Hifuture
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By analyzing existing cross correlation between Xinya Electronic Co and Shenzhen Hifuture Electric, you can compare the effects of market volatilities on Xinya Electronic and Shenzhen Hifuture 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 Xinya Electronic with a short position of Shenzhen Hifuture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinya Electronic and Shenzhen Hifuture.
Diversification Opportunities for Xinya Electronic and Shenzhen Hifuture
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xinya and Shenzhen is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Xinya Electronic Co and Shenzhen Hifuture Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Hifuture and Xinya Electronic 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 Xinya Electronic Co are associated (or correlated) with Shenzhen Hifuture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Hifuture has no effect on the direction of Xinya Electronic i.e., Xinya Electronic and Shenzhen Hifuture go up and down completely randomly.
Pair Corralation between Xinya Electronic and Shenzhen Hifuture
Assuming the 90 days trading horizon Xinya Electronic Co is expected to generate 1.12 times more return on investment than Shenzhen Hifuture. However, Xinya Electronic is 1.12 times more volatile than Shenzhen Hifuture Electric. It trades about 0.05 of its potential returns per unit of risk. Shenzhen Hifuture Electric is currently generating about -0.03 per unit of risk. If you would invest 970.00 in Xinya Electronic Co on December 4, 2024 and sell it today you would earn a total of 614.00 from holding Xinya Electronic Co or generate 63.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
Xinya Electronic Co vs. Shenzhen Hifuture Electric
Performance |
| Timeline |
| Xinya Electronic |
| Shenzhen Hifuture |
Xinya Electronic and Shenzhen Hifuture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinya Electronic and Shenzhen Hifuture
The main advantage of trading using opposite Xinya Electronic and Shenzhen Hifuture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinya Electronic position performs unexpectedly, Shenzhen Hifuture 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 Shenzhen Hifuture will offset losses from the drop in Shenzhen Hifuture's long position.| Xinya Electronic vs. Markor International Home | Xinya Electronic vs. Zhongshan Public Utilities | Xinya Electronic vs. Jiangsu Hoperun Software | Xinya Electronic vs. Dareway Software Co |
| Shenzhen Hifuture vs. Jiangsu Jinling Sports | Shenzhen Hifuture vs. Heilongjiang Transport Development | Shenzhen Hifuture vs. Shenzhen SDG Information | Shenzhen Hifuture vs. Longmaster Information Tech |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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