Correlation Between Hengli Industrial and Omnijoi Media
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By analyzing existing cross correlation between Hengli Industrial Development and Omnijoi Media Corp, you can compare the effects of market volatilities on Hengli Industrial and Omnijoi Media 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 Omnijoi Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Industrial and Omnijoi Media.
Diversification Opportunities for Hengli Industrial and Omnijoi Media
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hengli and Omnijoi is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Industrial Development and Omnijoi Media Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omnijoi Media 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 Omnijoi Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omnijoi Media Corp has no effect on the direction of Hengli Industrial i.e., Hengli Industrial and Omnijoi Media go up and down completely randomly.
Pair Corralation between Hengli Industrial and Omnijoi Media
Assuming the 90 days trading horizon Hengli Industrial is expected to generate 1.29 times less return on investment than Omnijoi Media. But when comparing it to its historical volatility, Hengli Industrial Development is 1.55 times less risky than Omnijoi Media. It trades about 0.12 of its potential returns per unit of risk. Omnijoi Media Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 624.00 in Omnijoi Media Corp on October 18, 2024 and sell it today you would earn a total of 216.00 from holding Omnijoi Media Corp or generate 34.62% 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. Omnijoi Media Corp
Performance |
| Timeline |
| Hengli Industrial |
| Omnijoi Media Corp |
Hengli Industrial and Omnijoi Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengli Industrial and Omnijoi Media
The main advantage of trading using opposite Hengli Industrial and Omnijoi Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Industrial position performs unexpectedly, Omnijoi Media 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 Omnijoi Media will offset losses from the drop in Omnijoi Media's long position.| Hengli Industrial vs. Xinjiang Baodi Mining | Hengli Industrial vs. Ningbo Fujia Industrial | Hengli Industrial vs. Tibet Huayu Mining | Hengli Industrial vs. Unisplendour Corp |
| Omnijoi Media vs. Hengli Industrial Development | Omnijoi Media vs. China National Software | Omnijoi Media vs. Ningbo Fujia Industrial | Omnijoi Media vs. Jonjee Hi tech Industrial |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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