Correlation Between Huagong Tech and Industrial
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By analyzing existing cross correlation between Huagong Tech Co and Industrial and Commercial, you can compare the effects of market volatilities on Huagong Tech and Industrial 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 Huagong Tech with a short position of Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huagong Tech and Industrial.
Diversification Opportunities for Huagong Tech and Industrial
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Huagong and Industrial is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Huagong Tech Co and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial and Huagong Tech 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 Huagong Tech Co are associated (or correlated) with Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Huagong Tech i.e., Huagong Tech and Industrial go up and down completely randomly.
Pair Corralation between Huagong Tech and Industrial
Assuming the 90 days trading horizon Huagong Tech Co is expected to generate 2.16 times more return on investment than Industrial. However, Huagong Tech is 2.16 times more volatile than Industrial and Commercial. It trades about 0.33 of its potential returns per unit of risk. Industrial and Commercial is currently generating about 0.43 per unit of risk. If you would invest 3,579 in Huagong Tech Co on September 28, 2024 and sell it today you would earn a total of 736.00 from holding Huagong Tech Co or generate 20.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Huagong Tech Co vs. Industrial and Commercial
Performance |
| Timeline |
| Huagong Tech |
| Industrial and Commercial |
Huagong Tech and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huagong Tech and Industrial
The main advantage of trading using opposite Huagong Tech and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huagong Tech position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial's long position.| Huagong Tech vs. Industrial and Commercial | Huagong Tech vs. China Construction Bank | Huagong Tech vs. Agricultural Bank of | Huagong Tech vs. Bank of China |
| Industrial vs. Agricultural Bank of | Industrial vs. GRG Banking Equipment | Industrial vs. Eyebright Medical Technology | Industrial vs. Postal Savings 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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