Correlation Between Shenzhen Transsion and Hunan Investment
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By analyzing existing cross correlation between Shenzhen Transsion Holdings and Hunan Investment Group, you can compare the effects of market volatilities on Shenzhen Transsion and Hunan Investment 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 Shenzhen Transsion with a short position of Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Transsion and Hunan Investment.
Diversification Opportunities for Shenzhen Transsion and Hunan Investment
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenzhen and Hunan is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Transsion Holdings and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment and Shenzhen Transsion 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 Shenzhen Transsion Holdings are associated (or correlated) with Hunan Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Investment has no effect on the direction of Shenzhen Transsion i.e., Shenzhen Transsion and Hunan Investment go up and down completely randomly.
Pair Corralation between Shenzhen Transsion and Hunan Investment
Assuming the 90 days trading horizon Shenzhen Transsion is expected to generate 3.1 times less return on investment than Hunan Investment. In addition to that, Shenzhen Transsion is 1.0 times more volatile than Hunan Investment Group. It trades about 0.02 of its total potential returns per unit of risk. Hunan Investment Group is currently generating about 0.06 per unit of volatility. If you would invest 476.00 in Hunan Investment Group on October 21, 2024 and sell it today you would earn a total of 40.00 from holding Hunan Investment Group or generate 8.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen Transsion Holdings vs. Hunan Investment Group
Performance |
Timeline |
Shenzhen Transsion |
Hunan Investment |
Shenzhen Transsion and Hunan Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Transsion and Hunan Investment
The main advantage of trading using opposite Shenzhen Transsion and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Transsion position performs unexpectedly, Hunan Investment 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 Hunan Investment will offset losses from the drop in Hunan Investment's long position.Shenzhen Transsion vs. Industrial and Commercial | Shenzhen Transsion vs. Kweichow Moutai Co | Shenzhen Transsion vs. Agricultural Bank of | Shenzhen Transsion vs. PetroChina Co Ltd |
Hunan Investment vs. Hangzhou Guotai Environmental | Hunan Investment vs. Shenzhen MYS Environmental | Hunan Investment vs. Ningbo Fangzheng Automobile | Hunan Investment vs. Eit Environmental Development |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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