Correlation Between Shenyang Huitian and Shenzhen SDG
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By analyzing existing cross correlation between Shenyang Huitian Thermal and Shenzhen SDG Information, you can compare the effects of market volatilities on Shenyang Huitian and Shenzhen SDG 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 Shenyang Huitian with a short position of Shenzhen SDG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Shenzhen SDG.
Diversification Opportunities for Shenyang Huitian and Shenzhen SDG
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenyang and Shenzhen is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and Shenzhen SDG Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen SDG Information and Shenyang Huitian 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 Shenyang Huitian Thermal are associated (or correlated) with Shenzhen SDG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen SDG Information has no effect on the direction of Shenyang Huitian i.e., Shenyang Huitian and Shenzhen SDG go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Shenzhen SDG
Assuming the 90 days trading horizon Shenyang Huitian is expected to generate 1.17 times less return on investment than Shenzhen SDG. In addition to that, Shenyang Huitian is 1.56 times more volatile than Shenzhen SDG Information. It trades about 0.01 of its total potential returns per unit of risk. Shenzhen SDG Information is currently generating about 0.01 per unit of volatility. If you would invest 547.00 in Shenzhen SDG Information on October 26, 2024 and sell it today you would earn a total of 0.00 from holding Shenzhen SDG Information or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Shenyang Huitian Thermal vs. Shenzhen SDG Information
Performance |
Timeline |
Shenyang Huitian Thermal |
Shenzhen SDG Information |
Shenyang Huitian and Shenzhen SDG Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenyang Huitian and Shenzhen SDG
The main advantage of trading using opposite Shenyang Huitian and Shenzhen SDG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian position performs unexpectedly, Shenzhen SDG 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 SDG will offset losses from the drop in Shenzhen SDG's long position.Shenyang Huitian vs. Chahua Modern Housewares | ||
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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