Correlation Between Arrow Home and Shantou Wanshun
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By analyzing existing cross correlation between Arrow Home Group and Shantou Wanshun Package, you can compare the effects of market volatilities on Arrow Home and Shantou Wanshun 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 Arrow Home with a short position of Shantou Wanshun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arrow Home and Shantou Wanshun.
Diversification Opportunities for Arrow Home and Shantou Wanshun
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Arrow and Shantou is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Arrow Home Group and Shantou Wanshun Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shantou Wanshun Package and Arrow Home 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 Arrow Home Group are associated (or correlated) with Shantou Wanshun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shantou Wanshun Package has no effect on the direction of Arrow Home i.e., Arrow Home and Shantou Wanshun go up and down completely randomly.
Pair Corralation between Arrow Home and Shantou Wanshun
Assuming the 90 days trading horizon Arrow Home is expected to generate 1.2 times less return on investment than Shantou Wanshun. But when comparing it to its historical volatility, Arrow Home Group is 1.4 times less risky than Shantou Wanshun. It trades about 0.08 of its potential returns per unit of risk. Shantou Wanshun Package is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 394.00 in Shantou Wanshun Package on October 18, 2024 and sell it today you would earn a total of 70.00 from holding Shantou Wanshun Package or generate 17.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arrow Home Group vs. Shantou Wanshun Package
Performance |
| Timeline |
| Arrow Home Group |
| Shantou Wanshun Package |
Arrow Home and Shantou Wanshun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arrow Home and Shantou Wanshun
The main advantage of trading using opposite Arrow Home and Shantou Wanshun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arrow Home position performs unexpectedly, Shantou Wanshun 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 Shantou Wanshun will offset losses from the drop in Shantou Wanshun's long position.| Arrow Home vs. Threes Company Media | Arrow Home vs. Huayi Brothers Media | Arrow Home vs. Shandong Homey Aquatic | Arrow Home vs. Wasu Media Holding |
| Shantou Wanshun vs. Easyhome New Retail | Shantou Wanshun vs. Mango Excellent Media | Shantou Wanshun vs. Arrow Home Group | Shantou Wanshun vs. Beijing Kingsoft Office |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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