Correlation Between Financial Street and HUAQIN TECHNOLOGY
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By analyzing existing cross correlation between Financial Street Holdings and HUAQIN TECHNOLOGY LTD, you can compare the effects of market volatilities on Financial Street and HUAQIN TECHNOLOGY 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 Financial Street with a short position of HUAQIN TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Financial Street and HUAQIN TECHNOLOGY.
Diversification Opportunities for Financial Street and HUAQIN TECHNOLOGY
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Financial and HUAQIN is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Financial Street Holdings and HUAQIN TECHNOLOGY LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUAQIN TECHNOLOGY LTD and Financial Street 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 Financial Street Holdings are associated (or correlated) with HUAQIN TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUAQIN TECHNOLOGY LTD has no effect on the direction of Financial Street i.e., Financial Street and HUAQIN TECHNOLOGY go up and down completely randomly.
Pair Corralation between Financial Street and HUAQIN TECHNOLOGY
Assuming the 90 days trading horizon Financial Street Holdings is expected to under-perform the HUAQIN TECHNOLOGY. In addition to that, Financial Street is 1.23 times more volatile than HUAQIN TECHNOLOGY LTD. It trades about -0.01 of its total potential returns per unit of risk. HUAQIN TECHNOLOGY LTD is currently generating about 0.11 per unit of volatility. If you would invest 5,702 in HUAQIN TECHNOLOGY LTD on October 14, 2024 and sell it today you would earn a total of 1,185 from holding HUAQIN TECHNOLOGY LTD or generate 20.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Financial Street Holdings vs. HUAQIN TECHNOLOGY LTD
Performance |
| Timeline |
| Financial Street Holdings |
| HUAQIN TECHNOLOGY LTD |
Financial Street and HUAQIN TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Financial Street and HUAQIN TECHNOLOGY
The main advantage of trading using opposite Financial Street and HUAQIN TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Financial Street position performs unexpectedly, HUAQIN TECHNOLOGY 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 HUAQIN TECHNOLOGY will offset losses from the drop in HUAQIN TECHNOLOGY's long position.| Financial Street vs. Heilongjiang Publishing Media | Financial Street vs. Lootom Telcovideo Network | Financial Street vs. Yingde Greatchem Chemicals | Financial Street vs. Hubei Xingfa Chemicals |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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