Correlation Between Hunan Investment and HanS Laser
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hunan Investment Group and HanS Laser Tech, you can compare the effects of market volatilities on Hunan Investment and HanS Laser 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 Hunan Investment with a short position of HanS Laser. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Investment and HanS Laser.
Diversification Opportunities for Hunan Investment and HanS Laser
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hunan and HanS is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Investment Group and HanS Laser Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HanS Laser Tech and Hunan Investment 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 Hunan Investment Group are associated (or correlated) with HanS Laser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HanS Laser Tech has no effect on the direction of Hunan Investment i.e., Hunan Investment and HanS Laser go up and down completely randomly.
Pair Corralation between Hunan Investment and HanS Laser
Assuming the 90 days trading horizon Hunan Investment Group is expected to generate 1.03 times more return on investment than HanS Laser. However, Hunan Investment is 1.03 times more volatile than HanS Laser Tech. It trades about 0.23 of its potential returns per unit of risk. HanS Laser Tech is currently generating about 0.06 per unit of risk. If you would invest 499.00 in Hunan Investment Group on September 5, 2024 and sell it today you would earn a total of 99.00 from holding Hunan Investment Group or generate 19.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Investment Group vs. HanS Laser Tech
Performance |
| Timeline |
| Hunan Investment |
| HanS Laser Tech |
Hunan Investment and HanS Laser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Investment and HanS Laser
The main advantage of trading using opposite Hunan Investment and HanS Laser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Investment position performs unexpectedly, HanS Laser 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 HanS Laser will offset losses from the drop in HanS Laser's long position.| Hunan Investment vs. Cambricon Technologies Corp | Hunan Investment vs. Loongson Technology Corp | Hunan Investment vs. Shenzhen Fortune Trend | Hunan Investment vs. Chongqing Road Bridge |
| HanS Laser vs. Chengdu Kanghua Biological | HanS Laser vs. Beijing Wantai Biological | HanS Laser vs. Suzhou Novoprotein Scientific | HanS Laser vs. Aluminum Corp of |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |