Correlation Between Shanghai Yaohua and Henan Shuanghui
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By analyzing existing cross correlation between Shanghai Yaohua Pilkington and Henan Shuanghui Investment, you can compare the effects of market volatilities on Shanghai Yaohua and Henan Shuanghui 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 Shanghai Yaohua with a short position of Henan Shuanghui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yaohua and Henan Shuanghui.
Diversification Opportunities for Shanghai Yaohua and Henan Shuanghui
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Henan is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yaohua Pilkington and Henan Shuanghui Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Shuanghui Inve and Shanghai Yaohua 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 Shanghai Yaohua Pilkington are associated (or correlated) with Henan Shuanghui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Shuanghui Inve has no effect on the direction of Shanghai Yaohua i.e., Shanghai Yaohua and Henan Shuanghui go up and down completely randomly.
Pair Corralation between Shanghai Yaohua and Henan Shuanghui
Assuming the 90 days trading horizon Shanghai Yaohua Pilkington is expected to generate 1.75 times more return on investment than Henan Shuanghui. However, Shanghai Yaohua is 1.75 times more volatile than Henan Shuanghui Investment. It trades about 0.09 of its potential returns per unit of risk. Henan Shuanghui Investment is currently generating about -0.15 per unit of risk. If you would invest 33.00 in Shanghai Yaohua Pilkington on August 30, 2024 and sell it today you would earn a total of 3.00 from holding Shanghai Yaohua Pilkington or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yaohua Pilkington vs. Henan Shuanghui Investment
Performance |
| Timeline |
| Shanghai Yaohua Pilk |
| Henan Shuanghui Inve |
Shanghai Yaohua and Henan Shuanghui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yaohua and Henan Shuanghui
The main advantage of trading using opposite Shanghai Yaohua and Henan Shuanghui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yaohua position performs unexpectedly, Henan Shuanghui 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 Henan Shuanghui will offset losses from the drop in Henan Shuanghui's long position.| Shanghai Yaohua vs. Zijin Mining Group | Shanghai Yaohua vs. Wanhua Chemical Group | Shanghai Yaohua vs. Baoshan Iron Steel | Shanghai Yaohua vs. Shandong Gold Mining |
| Henan Shuanghui vs. Industrial and Commercial | Henan Shuanghui vs. China Construction Bank | Henan Shuanghui vs. Agricultural Bank of | Henan Shuanghui vs. Bank of China |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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