Correlation Between Guangdong Shenglu and Henan Shuanghui
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Henan Shuanghui Investment, you can compare the effects of market volatilities on Guangdong Shenglu 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 Guangdong Shenglu with a short position of Henan Shuanghui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Henan Shuanghui.
Diversification Opportunities for Guangdong Shenglu and Henan Shuanghui
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and Henan is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic 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 Guangdong Shenglu 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 Guangdong Shenglu Telecommunication 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 Guangdong Shenglu i.e., Guangdong Shenglu and Henan Shuanghui go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Henan Shuanghui
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to generate 2.03 times more return on investment than Henan Shuanghui. However, Guangdong Shenglu is 2.03 times more volatile than Henan Shuanghui Investment. It trades about 0.11 of its potential returns per unit of risk. Henan Shuanghui Investment is currently generating about 0.05 per unit of risk. If you would invest 575.00 in Guangdong Shenglu Telecommunication on September 26, 2024 and sell it today you would earn a total of 117.00 from holding Guangdong Shenglu Telecommunication or generate 20.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Henan Shuanghui Investment
Performance |
Timeline |
Guangdong Shenglu |
Henan Shuanghui Inve |
Guangdong Shenglu and Henan Shuanghui Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangdong Shenglu and Henan Shuanghui
The main advantage of trading using opposite Guangdong Shenglu and Henan Shuanghui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu 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.Guangdong Shenglu vs. Dongfeng Automobile Co | Guangdong Shenglu vs. China Mobile Limited | Guangdong Shenglu vs. Railway Signal Communication | Guangdong Shenglu vs. Dareway Software Co |
Henan Shuanghui vs. Guangzhou Haige Communications | Henan Shuanghui vs. Metallurgical of | Henan Shuanghui vs. Guangdong Jingyi Metal | Henan Shuanghui vs. Guangdong Shenglu Telecommunication |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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