Correlation Between Chengdu Xingrong and Shenzhen Hifuture
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By analyzing existing cross correlation between Chengdu Xingrong Investment and Shenzhen Hifuture Electric, you can compare the effects of market volatilities on Chengdu Xingrong and Shenzhen Hifuture 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 Chengdu Xingrong with a short position of Shenzhen Hifuture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xingrong and Shenzhen Hifuture.
Diversification Opportunities for Chengdu Xingrong and Shenzhen Hifuture
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chengdu and Shenzhen is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xingrong Investment and Shenzhen Hifuture Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Hifuture and Chengdu Xingrong 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 Chengdu Xingrong Investment are associated (or correlated) with Shenzhen Hifuture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Hifuture has no effect on the direction of Chengdu Xingrong i.e., Chengdu Xingrong and Shenzhen Hifuture go up and down completely randomly.
Pair Corralation between Chengdu Xingrong and Shenzhen Hifuture
Assuming the 90 days trading horizon Chengdu Xingrong is expected to generate 3.76 times less return on investment than Shenzhen Hifuture. But when comparing it to its historical volatility, Chengdu Xingrong Investment is 1.22 times less risky than Shenzhen Hifuture. It trades about 0.08 of its potential returns per unit of risk. Shenzhen Hifuture Electric is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 215.00 in Shenzhen Hifuture Electric on September 24, 2024 and sell it today you would earn a total of 108.00 from holding Shenzhen Hifuture Electric or generate 50.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Chengdu Xingrong Investment vs. Shenzhen Hifuture Electric
Performance |
Timeline |
Chengdu Xingrong Inv |
Shenzhen Hifuture |
Chengdu Xingrong and Shenzhen Hifuture Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chengdu Xingrong and Shenzhen Hifuture
The main advantage of trading using opposite Chengdu Xingrong and Shenzhen Hifuture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xingrong position performs unexpectedly, Shenzhen Hifuture 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 Shenzhen Hifuture will offset losses from the drop in Shenzhen Hifuture's long position.Chengdu Xingrong vs. BeiGene | Chengdu Xingrong vs. Kweichow Moutai Co | Chengdu Xingrong vs. Beijing Roborock Technology | Chengdu Xingrong vs. G bits Network Technology |
Shenzhen Hifuture vs. Sinosteel Luonai Materials | Shenzhen Hifuture vs. Guangzhou KingTeller Technology | Shenzhen Hifuture vs. Sinofibers Technology Co | Shenzhen Hifuture vs. Guangzhou Restaurants Group |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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