Correlation Between Hengli Industrial and Goodwill E
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hengli Industrial Development and Goodwill E Health, you can compare the effects of market volatilities on Hengli Industrial and Goodwill E 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 Goodwill E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Industrial and Goodwill E.
Diversification Opportunities for Hengli Industrial and Goodwill E
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hengli and Goodwill is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Industrial Development and Goodwill E Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodwill E Health 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 Goodwill E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodwill E Health has no effect on the direction of Hengli Industrial i.e., Hengli Industrial and Goodwill E go up and down completely randomly.
Pair Corralation between Hengli Industrial and Goodwill E
Assuming the 90 days trading horizon Hengli Industrial Development is expected to under-perform the Goodwill E. But the stock apears to be less risky and, when comparing its historical volatility, Hengli Industrial Development is 1.1 times less risky than Goodwill E. The stock trades about -0.03 of its potential returns per unit of risk. The Goodwill E Health is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 3,814 in Goodwill E Health on November 7, 2024 and sell it today you would lose (1,421) from holding Goodwill E Health or give up 37.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengli Industrial Development vs. Goodwill E Health
Performance |
| Timeline |
| Hengli Industrial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| Goodwill E Health |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hengli Industrial and Goodwill E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengli Industrial and Goodwill E
The main advantage of trading using opposite Hengli Industrial and Goodwill E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Industrial position performs unexpectedly, Goodwill E 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 Goodwill E will offset losses from the drop in Goodwill E's long position.The idea behind Hengli Industrial Development and Goodwill E Health pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |