Correlation Between Hengli Industrial and Unisplendour Corp
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By analyzing existing cross correlation between Hengli Industrial Development and Unisplendour Corp, you can compare the effects of market volatilities on Hengli Industrial and Unisplendour Corp 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 Hengli Industrial with a short position of Unisplendour Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Industrial and Unisplendour Corp.
Diversification Opportunities for Hengli Industrial and Unisplendour Corp
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hengli and Unisplendour is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Industrial Development and Unisplendour Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unisplendour Corp and Hengli Industrial 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 Hengli Industrial Development are associated (or correlated) with Unisplendour Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unisplendour Corp has no effect on the direction of Hengli Industrial i.e., Hengli Industrial and Unisplendour Corp go up and down completely randomly.
Pair Corralation between Hengli Industrial and Unisplendour Corp
Assuming the 90 days trading horizon Hengli Industrial Development is expected to under-perform the Unisplendour Corp. In addition to that, Hengli Industrial is 1.22 times more volatile than Unisplendour Corp. It trades about -0.03 of its total potential returns per unit of risk. Unisplendour Corp is currently generating about 0.06 per unit of volatility. If you would invest 2,021 in Unisplendour Corp on October 12, 2024 and sell it today you would earn a total of 553.00 from holding Unisplendour Corp or generate 27.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengli Industrial Development vs. Unisplendour Corp
Performance |
| Timeline |
| Hengli Industrial |
| Unisplendour Corp |
Hengli Industrial and Unisplendour Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengli Industrial and Unisplendour Corp
The main advantage of trading using opposite Hengli Industrial and Unisplendour Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Industrial position performs unexpectedly, Unisplendour Corp 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 Unisplendour Corp will offset losses from the drop in Unisplendour Corp's long position.| Hengli Industrial vs. Tsingtao Brewery Co | Hengli Industrial vs. Dawning Information Industry | Hengli Industrial vs. Wuhan Yangtze Communication | Hengli Industrial vs. Unisplendour Corp |
| Unisplendour Corp vs. China Reform Health | Unisplendour Corp vs. Lotus Health Group | Unisplendour Corp vs. Heilongjiang Transport Development | Unisplendour Corp vs. China Aluminum International |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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