Correlation Between Armada Hflr and Henan Shenhuo
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By analyzing existing cross correlation between Armada Hflr Pr and Henan Shenhuo Coal, you can compare the effects of market volatilities on Armada Hflr and Henan Shenhuo 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 Armada Hflr with a short position of Henan Shenhuo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Henan Shenhuo.
Diversification Opportunities for Armada Hflr and Henan Shenhuo
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Armada and Henan is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Henan Shenhuo Coal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Shenhuo Coal and Armada Hflr 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 Armada Hflr Pr are associated (or correlated) with Henan Shenhuo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Shenhuo Coal has no effect on the direction of Armada Hflr i.e., Armada Hflr and Henan Shenhuo go up and down completely randomly.
Pair Corralation between Armada Hflr and Henan Shenhuo
Considering the 90-day investment horizon Armada Hflr is expected to generate 5.28 times less return on investment than Henan Shenhuo. But when comparing it to its historical volatility, Armada Hflr Pr is 1.57 times less risky than Henan Shenhuo. It trades about 0.01 of its potential returns per unit of risk. Henan Shenhuo Coal is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,347 in Henan Shenhuo Coal on September 20, 2024 and sell it today you would earn a total of 359.00 from holding Henan Shenhuo Coal or generate 26.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 96.36% |
Values | Daily Returns |
Armada Hflr Pr vs. Henan Shenhuo Coal
Performance |
Timeline |
Armada Hflr Pr |
Henan Shenhuo Coal |
Armada Hflr and Henan Shenhuo Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Armada Hflr and Henan Shenhuo
The main advantage of trading using opposite Armada Hflr and Henan Shenhuo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr position performs unexpectedly, Henan Shenhuo 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 Shenhuo will offset losses from the drop in Henan Shenhuo's long position.Armada Hflr vs. Modiv Inc | Armada Hflr vs. Precinct Properties New | Armada Hflr vs. Global Net Lease | Armada Hflr vs. NexPoint Diversified Real |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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