Correlation Between Shenyang Huitian and Senci Electric
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By analyzing existing cross correlation between Shenyang Huitian Thermal and Senci Electric Machinery, you can compare the effects of market volatilities on Shenyang Huitian and Senci Electric 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 Senci Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Senci Electric.
Diversification Opportunities for Shenyang Huitian and Senci Electric
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenyang and Senci is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and Senci Electric Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senci Electric Machinery 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 Senci Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senci Electric Machinery has no effect on the direction of Shenyang Huitian i.e., Shenyang Huitian and Senci Electric go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Senci Electric
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to generate 1.16 times more return on investment than Senci Electric. However, Shenyang Huitian is 1.16 times more volatile than Senci Electric Machinery. It trades about 0.18 of its potential returns per unit of risk. Senci Electric Machinery is currently generating about 0.18 per unit of risk. If you would invest 277.00 in Shenyang Huitian Thermal on September 13, 2024 and sell it today you would earn a total of 107.00 from holding Shenyang Huitian Thermal or generate 38.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Shenyang Huitian Thermal vs. Senci Electric Machinery
Performance |
Timeline |
Shenyang Huitian Thermal |
Senci Electric Machinery |
Shenyang Huitian and Senci Electric Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenyang Huitian and Senci Electric
The main advantage of trading using opposite Shenyang Huitian and Senci Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian position performs unexpectedly, Senci Electric 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 Senci Electric will offset losses from the drop in Senci Electric's long position.Shenyang Huitian vs. Zhangjiagang Freetrade Science | Shenyang Huitian vs. Citic Guoan Wine | Shenyang Huitian vs. YiDong Electronics Technology | Shenyang Huitian vs. Success Electronics |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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