Correlation Between Hengli Industrial and Beijing Roborock
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By analyzing existing cross correlation between Hengli Industrial Development and Beijing Roborock Technology, you can compare the effects of market volatilities on Hengli Industrial and Beijing Roborock 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 Beijing Roborock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Industrial and Beijing Roborock.
Diversification Opportunities for Hengli Industrial and Beijing Roborock
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hengli and Beijing is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Industrial Development and Beijing Roborock Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Roborock Tec 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 Beijing Roborock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Roborock Tec has no effect on the direction of Hengli Industrial i.e., Hengli Industrial and Beijing Roborock go up and down completely randomly.
Pair Corralation between Hengli Industrial and Beijing Roborock
Assuming the 90 days trading horizon Hengli Industrial Development is expected to under-perform the Beijing Roborock. But the stock apears to be less risky and, when comparing its historical volatility, Hengli Industrial Development is 1.05 times less risky than Beijing Roborock. The stock trades about -0.02 of its potential returns per unit of risk. The Beijing Roborock Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 18,466 in Beijing Roborock Technology on September 13, 2024 and sell it today you would earn a total of 3,985 from holding Beijing Roborock Technology or generate 21.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengli Industrial Development vs. Beijing Roborock Technology
Performance |
| Timeline |
| Hengli Industrial |
| Beijing Roborock Tec |
Hengli Industrial and Beijing Roborock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengli Industrial and Beijing Roborock
The main advantage of trading using opposite Hengli Industrial and Beijing Roborock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Industrial position performs unexpectedly, Beijing Roborock 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 Beijing Roborock will offset losses from the drop in Beijing Roborock's long position.| Hengli Industrial vs. BeiGene | Hengli Industrial vs. Kweichow Moutai Co | Hengli Industrial vs. Beijing Roborock Technology | Hengli Industrial vs. G bits Network Technology |
| Beijing Roborock vs. Sino Platinum Metals Co | Beijing Roborock vs. Hengli Industrial Development | Beijing Roborock vs. Hang Xiao Steel | Beijing Roborock vs. Qiaoyin Environmental Tech |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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