Correlation Between Hunan Investment and Risesun Real
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By analyzing existing cross correlation between Hunan Investment Group and Risesun Real Estate, you can compare the effects of market volatilities on Hunan Investment and Risesun Real 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 Risesun Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Investment and Risesun Real.
Diversification Opportunities for Hunan Investment and Risesun Real
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hunan and Risesun is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Investment Group and Risesun Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Risesun Real Estate 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 Risesun Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Risesun Real Estate has no effect on the direction of Hunan Investment i.e., Hunan Investment and Risesun Real go up and down completely randomly.
Pair Corralation between Hunan Investment and Risesun Real
Assuming the 90 days trading horizon Hunan Investment is expected to generate 1.31 times less return on investment than Risesun Real. But when comparing it to its historical volatility, Hunan Investment Group is 1.46 times less risky than Risesun Real. It trades about 0.23 of its potential returns per unit of risk. Risesun Real Estate is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 179.00 in Risesun Real Estate on September 5, 2024 and sell it today you would earn a total of 45.00 from holding Risesun Real Estate or generate 25.14% 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. Risesun Real Estate
Performance |
| Timeline |
| Hunan Investment |
| Risesun Real Estate |
Hunan Investment and Risesun Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Investment and Risesun Real
The main advantage of trading using opposite Hunan Investment and Risesun Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Investment position performs unexpectedly, Risesun Real 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 Risesun Real will offset losses from the drop in Risesun Real'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 |
| Risesun Real vs. Nanjing Putian Telecommunications | Risesun Real vs. Tianjin Realty Development | Risesun Real vs. Shenyang Huitian Thermal | Risesun Real vs. Shenzhen Changfang Light |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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