Correlation Between Shenzhen Hifuture and Leaguer Shenzhen
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Leaguer Shenzhen MicroElectronics, you can compare the effects of market volatilities on Shenzhen Hifuture and Leaguer Shenzhen 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 Hifuture with a short position of Leaguer Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Leaguer Shenzhen.
Diversification Opportunities for Shenzhen Hifuture and Leaguer Shenzhen
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shenzhen and Leaguer is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Leaguer Shenzhen MicroElectron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leaguer Shenzhen Mic and Shenzhen Hifuture 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 Hifuture Electric are associated (or correlated) with Leaguer Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leaguer Shenzhen Mic has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and Leaguer Shenzhen go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Leaguer Shenzhen
Assuming the 90 days trading horizon Shenzhen Hifuture is expected to generate 1.38 times less return on investment than Leaguer Shenzhen. But when comparing it to its historical volatility, Shenzhen Hifuture Electric is 1.51 times less risky than Leaguer Shenzhen. It trades about 0.19 of its potential returns per unit of risk. Leaguer Shenzhen MicroElectronics is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,824 in Leaguer Shenzhen MicroElectronics on September 18, 2024 and sell it today you would earn a total of 976.00 from holding Leaguer Shenzhen MicroElectronics or generate 53.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 98.31% |
Values | Daily Returns |
Shenzhen Hifuture Electric vs. Leaguer Shenzhen MicroElectron
Performance |
Timeline |
Shenzhen Hifuture |
Leaguer Shenzhen Mic |
Shenzhen Hifuture and Leaguer Shenzhen Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Hifuture and Leaguer Shenzhen
The main advantage of trading using opposite Shenzhen Hifuture and Leaguer Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, Leaguer Shenzhen 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 Leaguer Shenzhen will offset losses from the drop in Leaguer Shenzhen's long position.Shenzhen Hifuture vs. Postal Savings Bank | ||
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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