Correlation Between Hunan Investment and Do Fluoride
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By analyzing existing cross correlation between Hunan Investment Group and Do Fluoride Chemicals Co, you can compare the effects of market volatilities on Hunan Investment and Do Fluoride 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 Do Fluoride. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Investment and Do Fluoride.
Diversification Opportunities for Hunan Investment and Do Fluoride
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hunan and 002407 is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Investment Group and Do Fluoride Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Do Fluoride Chemicals 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 Do Fluoride. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Do Fluoride Chemicals has no effect on the direction of Hunan Investment i.e., Hunan Investment and Do Fluoride go up and down completely randomly.
Pair Corralation between Hunan Investment and Do Fluoride
Assuming the 90 days trading horizon Hunan Investment Group is expected to generate 1.0 times more return on investment than Do Fluoride. However, Hunan Investment Group is 1.0 times less risky than Do Fluoride. It trades about 0.03 of its potential returns per unit of risk. Do Fluoride Chemicals Co is currently generating about 0.0 per unit of risk. If you would invest 469.00 in Hunan Investment Group on October 18, 2024 and sell it today you would earn a total of 43.00 from holding Hunan Investment Group or generate 9.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Investment Group vs. Do Fluoride Chemicals Co
Performance |
| Timeline |
| Hunan Investment |
| Do Fluoride Chemicals |
Hunan Investment and Do Fluoride Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Investment and Do Fluoride
The main advantage of trading using opposite Hunan Investment and Do Fluoride positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Investment position performs unexpectedly, Do Fluoride 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 Do Fluoride will offset losses from the drop in Do Fluoride's long position.| Hunan Investment vs. Harvest Fund Management | Hunan Investment vs. CICC Fund Management | Hunan Investment vs. AVIC Fund Management | Hunan Investment vs. Cicc Fund Management |
| Do Fluoride vs. East Money Information | Do Fluoride vs. GRINM Semiconductor Materials | Do Fluoride vs. Thinkon Semiconductor Jinzhou | Do Fluoride vs. Suzhou Oriental Semiconductor |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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