Correlation Between Jiaozuo Wanfang and HUAQIN TECHNOLOGY
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By analyzing existing cross correlation between Jiaozuo Wanfang Aluminum and HUAQIN TECHNOLOGY LTD, you can compare the effects of market volatilities on Jiaozuo Wanfang 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 Jiaozuo Wanfang with a short position of HUAQIN TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiaozuo Wanfang and HUAQIN TECHNOLOGY.
Diversification Opportunities for Jiaozuo Wanfang and HUAQIN TECHNOLOGY
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jiaozuo and HUAQIN is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Jiaozuo Wanfang Aluminum 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 Jiaozuo Wanfang 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 Jiaozuo Wanfang Aluminum 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 Jiaozuo Wanfang i.e., Jiaozuo Wanfang and HUAQIN TECHNOLOGY go up and down completely randomly.
Pair Corralation between Jiaozuo Wanfang and HUAQIN TECHNOLOGY
Assuming the 90 days trading horizon Jiaozuo Wanfang is expected to generate 1.66 times less return on investment than HUAQIN TECHNOLOGY. But when comparing it to its historical volatility, Jiaozuo Wanfang Aluminum is 1.11 times less risky than HUAQIN TECHNOLOGY. It trades about 0.03 of its potential returns per unit of risk. HUAQIN TECHNOLOGY LTD is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 5,128 in HUAQIN TECHNOLOGY LTD on October 11, 2024 and sell it today you would earn a total of 1,947 from holding HUAQIN TECHNOLOGY LTD or generate 37.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 72.48% |
| Values | Daily Returns |
Jiaozuo Wanfang Aluminum vs. HUAQIN TECHNOLOGY LTD
Performance |
| Timeline |
| Jiaozuo Wanfang Aluminum |
| HUAQIN TECHNOLOGY LTD |
Jiaozuo Wanfang and HUAQIN TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiaozuo Wanfang and HUAQIN TECHNOLOGY
The main advantage of trading using opposite Jiaozuo Wanfang and HUAQIN TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiaozuo Wanfang 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.| Jiaozuo Wanfang vs. Citic Offshore Helicopter | Jiaozuo Wanfang vs. Suofeiya Home Collection | Jiaozuo Wanfang vs. Oppein Home Group | Jiaozuo Wanfang vs. Ningbo Homelink Eco iTech |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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