Correlation Between Henan Shuanghui and Suofeiya Home
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By analyzing existing cross correlation between Henan Shuanghui Investment and Suofeiya Home Collection, you can compare the effects of market volatilities on Henan Shuanghui and Suofeiya Home 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 Henan Shuanghui with a short position of Suofeiya Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and Suofeiya Home.
Diversification Opportunities for Henan Shuanghui and Suofeiya Home
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Henan and Suofeiya is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment and Suofeiya Home Collection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suofeiya Home Collection and Henan Shuanghui 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 Henan Shuanghui Investment are associated (or correlated) with Suofeiya Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suofeiya Home Collection has no effect on the direction of Henan Shuanghui i.e., Henan Shuanghui and Suofeiya Home go up and down completely randomly.
Pair Corralation between Henan Shuanghui and Suofeiya Home
Assuming the 90 days trading horizon Henan Shuanghui is expected to generate 2.53 times less return on investment than Suofeiya Home. But when comparing it to its historical volatility, Henan Shuanghui Investment is 2.06 times less risky than Suofeiya Home. It trades about 0.08 of its potential returns per unit of risk. Suofeiya Home Collection is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,403 in Suofeiya Home Collection on September 25, 2024 and sell it today you would earn a total of 287.00 from holding Suofeiya Home Collection or generate 20.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Henan Shuanghui Investment vs. Suofeiya Home Collection
Performance |
Timeline |
Henan Shuanghui Inve |
Suofeiya Home Collection |
Henan Shuanghui and Suofeiya Home Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Henan Shuanghui and Suofeiya Home
The main advantage of trading using opposite Henan Shuanghui and Suofeiya Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui position performs unexpectedly, Suofeiya Home 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 Suofeiya Home will offset losses from the drop in Suofeiya Home's long position.Henan Shuanghui vs. Ming Yang Smart | Henan Shuanghui vs. 159681 | Henan Shuanghui vs. 159005 | Henan Shuanghui vs. Loctek Ergonomic Technology |
Suofeiya Home vs. Agricultural Bank of | Suofeiya Home vs. Industrial and Commercial | Suofeiya Home vs. Bank of China | Suofeiya Home vs. China Construction Bank |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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