Correlation Between Hubei Huaqiang and Sungrow Power
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By analyzing existing cross correlation between Hubei Huaqiang High Tech and Sungrow Power Supply, you can compare the effects of market volatilities on Hubei Huaqiang and Sungrow Power 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 Hubei Huaqiang with a short position of Sungrow Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Huaqiang and Sungrow Power.
Diversification Opportunities for Hubei Huaqiang and Sungrow Power
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hubei and Sungrow is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Huaqiang High Tech and Sungrow Power Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sungrow Power Supply and Hubei Huaqiang 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 Hubei Huaqiang High Tech are associated (or correlated) with Sungrow Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sungrow Power Supply has no effect on the direction of Hubei Huaqiang i.e., Hubei Huaqiang and Sungrow Power go up and down completely randomly.
Pair Corralation between Hubei Huaqiang and Sungrow Power
Assuming the 90 days trading horizon Hubei Huaqiang High Tech is expected to generate 2.69 times more return on investment than Sungrow Power. However, Hubei Huaqiang is 2.69 times more volatile than Sungrow Power Supply. It trades about 0.18 of its potential returns per unit of risk. Sungrow Power Supply is currently generating about 0.01 per unit of risk. If you would invest 1,500 in Hubei Huaqiang High Tech on December 1, 2024 and sell it today you would earn a total of 240.00 from holding Hubei Huaqiang High Tech or generate 16.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Huaqiang High Tech vs. Sungrow Power Supply
Performance |
| Timeline |
| Hubei Huaqiang High |
| Sungrow Power Supply |
Hubei Huaqiang and Sungrow Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Huaqiang and Sungrow Power
The main advantage of trading using opposite Hubei Huaqiang and Sungrow Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Huaqiang position performs unexpectedly, Sungrow Power 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 Sungrow Power will offset losses from the drop in Sungrow Power's long position.| Hubei Huaqiang vs. Ningbo Ligong Online | Hubei Huaqiang vs. Linkage Software Co | Hubei Huaqiang vs. Guangzhou Restaurants Group | Hubei Huaqiang vs. Wangneng Environment Co |
| Sungrow Power vs. China Satellite Communications | Sungrow Power vs. Nanjing Putian Telecommunications | Sungrow Power vs. Cicc Fund Management | Sungrow Power vs. Chengdu Spaceon Electronics |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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