Correlation Between Shenyang Huitian and Pure Cycle
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By analyzing existing cross correlation between Shenyang Huitian Thermal and Pure Cycle, you can compare the effects of market volatilities on Shenyang Huitian and Pure Cycle 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 Shenyang Huitian with a short position of Pure Cycle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Pure Cycle.
Diversification Opportunities for Shenyang Huitian and Pure Cycle
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shenyang and Pure is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and Pure Cycle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pure Cycle and Shenyang Huitian 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 Shenyang Huitian Thermal are associated (or correlated) with Pure Cycle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pure Cycle has no effect on the direction of Shenyang Huitian i.e., Shenyang Huitian and Pure Cycle go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Pure Cycle
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to under-perform the Pure Cycle. But the stock apears to be less risky and, when comparing its historical volatility, Shenyang Huitian Thermal is 1.19 times less risky than Pure Cycle. The stock trades about -0.06 of its potential returns per unit of risk. The Pure Cycle is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,069 in Pure Cycle on July 6, 2025 and sell it today you would earn a total of 42.00 from holding Pure Cycle or generate 3.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. Pure Cycle
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Pure Cycle |
Shenyang Huitian and Pure Cycle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Pure Cycle
The main advantage of trading using opposite Shenyang Huitian and Pure Cycle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian position performs unexpectedly, Pure Cycle 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 Pure Cycle will offset losses from the drop in Pure Cycle's long position.| Shenyang Huitian vs. Shenzhen Zqgame | Shenyang Huitian vs. Goldlok Toys Holdings | Shenyang Huitian vs. XinJiang GuoTong Pipeline | Shenyang Huitian vs. Guangdong Qunxing Toys |
| Pure Cycle vs. Cadiz Inc | Pure Cycle vs. Artesian Resources | Pure Cycle vs. Global Water Resources | Pure Cycle vs. Parke Bancorp |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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