Correlation Between Sinosteel Luonai and Hangzhou Minsheng
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By analyzing existing cross correlation between Sinosteel Luonai Materials and Hangzhou Minsheng Healthcare, you can compare the effects of market volatilities on Sinosteel Luonai and Hangzhou Minsheng 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 Sinosteel Luonai with a short position of Hangzhou Minsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinosteel Luonai and Hangzhou Minsheng.
Diversification Opportunities for Sinosteel Luonai and Hangzhou Minsheng
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinosteel and Hangzhou is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Sinosteel Luonai Materials and Hangzhou Minsheng Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Minsheng and Sinosteel Luonai 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 Sinosteel Luonai Materials are associated (or correlated) with Hangzhou Minsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Minsheng has no effect on the direction of Sinosteel Luonai i.e., Sinosteel Luonai and Hangzhou Minsheng go up and down completely randomly.
Pair Corralation between Sinosteel Luonai and Hangzhou Minsheng
Assuming the 90 days trading horizon Sinosteel Luonai is expected to generate 3.25 times less return on investment than Hangzhou Minsheng. In addition to that, Sinosteel Luonai is 1.02 times more volatile than Hangzhou Minsheng Healthcare. It trades about 0.02 of its total potential returns per unit of risk. Hangzhou Minsheng Healthcare is currently generating about 0.05 per unit of volatility. If you would invest 1,328 in Hangzhou Minsheng Healthcare on September 1, 2024 and sell it today you would earn a total of 28.00 from holding Hangzhou Minsheng Healthcare or generate 2.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinosteel Luonai Materials vs. Hangzhou Minsheng Healthcare
Performance |
| Timeline |
| Sinosteel Luonai Mat |
| Hangzhou Minsheng |
Sinosteel Luonai and Hangzhou Minsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinosteel Luonai and Hangzhou Minsheng
The main advantage of trading using opposite Sinosteel Luonai and Hangzhou Minsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinosteel Luonai position performs unexpectedly, Hangzhou Minsheng 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 Hangzhou Minsheng will offset losses from the drop in Hangzhou Minsheng's long position.| Sinosteel Luonai vs. Hangzhou Minsheng Healthcare | Sinosteel Luonai vs. Yunnan Jianzhijia Health Chain | Sinosteel Luonai vs. Everjoy Health Group | Sinosteel Luonai vs. By health |
| Hangzhou Minsheng vs. Boai NKY Pharmaceuticals | Hangzhou Minsheng vs. ADAMA | Hangzhou Minsheng vs. Shanghai Lingyun Industries | Hangzhou Minsheng vs. Zhejiang Dahua 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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