Correlation Between Hengli Industrial and Zhengzhou Qianweiyangchu
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By analyzing existing cross correlation between Hengli Industrial Development and Zhengzhou Qianweiyangchu Food, you can compare the effects of market volatilities on Hengli Industrial and Zhengzhou Qianweiyangchu 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 Zhengzhou Qianweiyangchu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Industrial and Zhengzhou Qianweiyangchu.
Diversification Opportunities for Hengli Industrial and Zhengzhou Qianweiyangchu
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hengli and Zhengzhou is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Industrial Development and Zhengzhou Qianweiyangchu Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengzhou Qianweiyangchu 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 Zhengzhou Qianweiyangchu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengzhou Qianweiyangchu has no effect on the direction of Hengli Industrial i.e., Hengli Industrial and Zhengzhou Qianweiyangchu go up and down completely randomly.
Pair Corralation between Hengli Industrial and Zhengzhou Qianweiyangchu
Assuming the 90 days trading horizon Hengli Industrial Development is expected to generate 1.08 times more return on investment than Zhengzhou Qianweiyangchu. However, Hengli Industrial is 1.08 times more volatile than Zhengzhou Qianweiyangchu Food. It trades about 0.06 of its potential returns per unit of risk. Zhengzhou Qianweiyangchu Food is currently generating about -0.59 per unit of risk. If you would invest 219.00 in Hengli Industrial Development on October 14, 2024 and sell it today you would earn a total of 6.00 from holding Hengli Industrial Development or generate 2.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengli Industrial Development vs. Zhengzhou Qianweiyangchu Food
Performance |
| Timeline |
| Hengli Industrial |
| Zhengzhou Qianweiyangchu |
Hengli Industrial and Zhengzhou Qianweiyangchu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengli Industrial and Zhengzhou Qianweiyangchu
The main advantage of trading using opposite Hengli Industrial and Zhengzhou Qianweiyangchu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Industrial position performs unexpectedly, Zhengzhou Qianweiyangchu 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 Zhengzhou Qianweiyangchu will offset losses from the drop in Zhengzhou Qianweiyangchu's long position.| Hengli Industrial vs. GRG Banking Equipment | Hengli Industrial vs. Tongyu Communication | Hengli Industrial vs. Agricultural Bank of | Hengli Industrial vs. Hua Xia Bank |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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