Correlation Between Leaguer Shenzhen and Hunan Investment
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By analyzing existing cross correlation between Leaguer Shenzhen MicroElectronics and Hunan Investment Group, you can compare the effects of market volatilities on Leaguer Shenzhen and Hunan Investment 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 Leaguer Shenzhen with a short position of Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leaguer Shenzhen and Hunan Investment.
Diversification Opportunities for Leaguer Shenzhen and Hunan Investment
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Leaguer and Hunan is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Leaguer Shenzhen MicroElectron and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment and Leaguer Shenzhen 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 Leaguer Shenzhen MicroElectronics are associated (or correlated) with Hunan Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Investment has no effect on the direction of Leaguer Shenzhen i.e., Leaguer Shenzhen and Hunan Investment go up and down completely randomly.
Pair Corralation between Leaguer Shenzhen and Hunan Investment
Assuming the 90 days trading horizon Leaguer Shenzhen MicroElectronics is expected to under-perform the Hunan Investment. But the stock apears to be less risky and, when comparing its historical volatility, Leaguer Shenzhen MicroElectronics is 1.51 times less risky than Hunan Investment. The stock trades about -0.03 of its potential returns per unit of risk. The Hunan Investment Group is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 524.00 in Hunan Investment Group on September 13, 2024 and sell it today you would earn a total of 81.00 from holding Hunan Investment Group or generate 15.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leaguer Shenzhen MicroElectron vs. Hunan Investment Group
Performance |
| Timeline |
| Leaguer Shenzhen Mic |
| Hunan Investment |
Leaguer Shenzhen and Hunan Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leaguer Shenzhen and Hunan Investment
The main advantage of trading using opposite Leaguer Shenzhen and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leaguer Shenzhen position performs unexpectedly, Hunan Investment 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 Hunan Investment will offset losses from the drop in Hunan Investment's long position.| Leaguer Shenzhen vs. Nanjing Putian Telecommunications | Leaguer Shenzhen vs. Tianjin Realty Development | Leaguer Shenzhen vs. Kangyue Technology Co | Leaguer Shenzhen vs. Shenzhen Hifuture Electric |
| Hunan Investment vs. Kweichow Moutai Co | Hunan Investment vs. Jiangsu Pacific Quartz | Hunan Investment vs. Shenzhen Transsion Holdings | Hunan Investment vs. Beijing Roborock 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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