Correlation Between Henan Shuanghui and Hunan Investment
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By analyzing existing cross correlation between Henan Shuanghui Investment and Hunan Investment Group, you can compare the effects of market volatilities on Henan Shuanghui 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 Henan Shuanghui with a short position of Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and Hunan Investment.
Diversification Opportunities for Henan Shuanghui and Hunan Investment
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Henan and Hunan is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment and Henan Shuanghui 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 Henan Shuanghui Investment 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 Henan Shuanghui i.e., Henan Shuanghui and Hunan Investment go up and down completely randomly.
Pair Corralation between Henan Shuanghui and Hunan Investment
Assuming the 90 days trading horizon Henan Shuanghui is expected to generate 1.74 times less return on investment than Hunan Investment. But when comparing it to its historical volatility, Henan Shuanghui Investment is 2.53 times less risky than Hunan Investment. It trades about 0.11 of its potential returns per unit of risk. Hunan Investment Group is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 548.00 in Hunan Investment Group on September 8, 2025 and sell it today you would earn a total of 42.00 from holding Hunan Investment Group or generate 7.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henan Shuanghui Investment vs. Hunan Investment Group
Performance |
| Timeline |
| Henan Shuanghui Inve |
| Hunan Investment |
Henan Shuanghui and Hunan Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Shuanghui and Hunan Investment
The main advantage of trading using opposite Henan Shuanghui and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui 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.| Henan Shuanghui vs. Kingsignal Technology Co | Henan Shuanghui vs. Linewell Software Co | Henan Shuanghui vs. Wondershare Technology Co | Henan Shuanghui vs. Tianjin Ruixin Technology |
| Hunan Investment vs. Industrial and Commercial | Hunan Investment vs. Agricultural Bank of | Hunan Investment vs. China Construction Bank | Hunan Investment vs. China Mobile Limited |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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