Correlation Between Henan Lantian and Shenzhen MYS
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By analyzing existing cross correlation between Henan Lantian Gas and Shenzhen MYS Environmental, you can compare the effects of market volatilities on Henan Lantian and Shenzhen MYS 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 Henan Lantian with a short position of Shenzhen MYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Lantian and Shenzhen MYS.
Diversification Opportunities for Henan Lantian and Shenzhen MYS
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Henan and Shenzhen is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Henan Lantian Gas and Shenzhen MYS Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen MYS Environ and Henan Lantian 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 Henan Lantian Gas are associated (or correlated) with Shenzhen MYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen MYS Environ has no effect on the direction of Henan Lantian i.e., Henan Lantian and Shenzhen MYS go up and down completely randomly.
Pair Corralation between Henan Lantian and Shenzhen MYS
Assuming the 90 days trading horizon Henan Lantian is expected to generate 1.33 times less return on investment than Shenzhen MYS. But when comparing it to its historical volatility, Henan Lantian Gas is 1.39 times less risky than Shenzhen MYS. It trades about 0.06 of its potential returns per unit of risk. Shenzhen MYS Environmental is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 282.00 in Shenzhen MYS Environmental on August 25, 2024 and sell it today you would earn a total of 93.00 from holding Shenzhen MYS Environmental or generate 32.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henan Lantian Gas vs. Shenzhen MYS Environmental
Performance |
| Timeline |
| Henan Lantian Gas |
| Shenzhen MYS Environ |
Henan Lantian and Shenzhen MYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Lantian and Shenzhen MYS
The main advantage of trading using opposite Henan Lantian and Shenzhen MYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Lantian position performs unexpectedly, Shenzhen MYS 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 MYS will offset losses from the drop in Shenzhen MYS's long position.| Henan Lantian vs. Cambricon Technologies Corp | Henan Lantian vs. Loongson Technology Corp | Henan Lantian vs. Chongqing Road Bridge | Henan Lantian vs. Shenzhen Fortune Trend |
| Shenzhen MYS vs. Zijin Mining Group | Shenzhen MYS vs. Wanhua Chemical Group | Shenzhen MYS vs. Baoshan Iron Steel | Shenzhen MYS vs. Shandong Gold Mining |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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