Correlation Between Hengli Industrial and Sichuan Hebang
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By analyzing existing cross correlation between Hengli Industrial Development and Sichuan Hebang Biotechnology, you can compare the effects of market volatilities on Hengli Industrial and Sichuan Hebang 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 Sichuan Hebang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Industrial and Sichuan Hebang.
Diversification Opportunities for Hengli Industrial and Sichuan Hebang
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hengli and Sichuan is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Industrial Development and Sichuan Hebang Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Hebang Biote 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 Sichuan Hebang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Hebang Biote has no effect on the direction of Hengli Industrial i.e., Hengli Industrial and Sichuan Hebang go up and down completely randomly.
Pair Corralation between Hengli Industrial and Sichuan Hebang
Assuming the 90 days trading horizon Hengli Industrial Development is expected to under-perform the Sichuan Hebang. In addition to that, Hengli Industrial is 1.17 times more volatile than Sichuan Hebang Biotechnology. It trades about -0.15 of its total potential returns per unit of risk. Sichuan Hebang Biotechnology is currently generating about 0.15 per unit of volatility. If you would invest 213.00 in Sichuan Hebang Biotechnology on September 14, 2024 and sell it today you would earn a total of 19.00 from holding Sichuan Hebang Biotechnology or generate 8.92% 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. Sichuan Hebang Biotechnology
Performance |
| Timeline |
| Hengli Industrial |
| Sichuan Hebang Biote |
Hengli Industrial and Sichuan Hebang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengli Industrial and Sichuan Hebang
The main advantage of trading using opposite Hengli Industrial and Sichuan Hebang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Industrial position performs unexpectedly, Sichuan Hebang 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 Sichuan Hebang will offset losses from the drop in Sichuan Hebang's long position.| Hengli Industrial vs. Southchip Semiconductor Technology | Hengli Industrial vs. Chongqing Sulian Plastic | Hengli Industrial vs. GigaDevice SemiconductorBeiji | Hengli Industrial vs. StarPower Semiconductor |
| Sichuan Hebang vs. Vanfund Urban Investment | Sichuan Hebang vs. Ping An Insurance | Sichuan Hebang vs. Yili Chuanning Biotechnology | Sichuan Hebang vs. Bloomage Biotechnology Corp |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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