Correlation Between Arrow Home and Changjiang Jinggong
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By analyzing existing cross correlation between Arrow Home Group and Changjiang Jinggong Steel, you can compare the effects of market volatilities on Arrow Home and Changjiang Jinggong 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 Changjiang Jinggong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arrow Home and Changjiang Jinggong.
Diversification Opportunities for Arrow Home and Changjiang Jinggong
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Arrow and Changjiang is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Arrow Home Group and Changjiang Jinggong Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Jinggong Steel 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 Changjiang Jinggong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Jinggong Steel has no effect on the direction of Arrow Home i.e., Arrow Home and Changjiang Jinggong go up and down completely randomly.
Pair Corralation between Arrow Home and Changjiang Jinggong
Assuming the 90 days trading horizon Arrow Home Group is expected to generate 1.57 times more return on investment than Changjiang Jinggong. However, Arrow Home is 1.57 times more volatile than Changjiang Jinggong Steel. It trades about -0.27 of its potential returns per unit of risk. Changjiang Jinggong Steel is currently generating about -0.51 per unit of risk. If you would invest 875.00 in Arrow Home Group on October 16, 2024 and sell it today you would lose (111.00) from holding Arrow Home Group or give up 12.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Arrow Home Group vs. Changjiang Jinggong Steel
Performance |
| Timeline |
| Arrow Home Group |
| Changjiang Jinggong Steel |
Arrow Home and Changjiang Jinggong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arrow Home and Changjiang Jinggong
The main advantage of trading using opposite Arrow Home and Changjiang Jinggong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arrow Home position performs unexpectedly, Changjiang Jinggong 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 Changjiang Jinggong will offset losses from the drop in Changjiang Jinggong's long position.| Arrow Home vs. Tibet Huayu Mining | Arrow Home vs. Jinhui Liquor Co | Arrow Home vs. Aurora Optoelectronics Co | Arrow Home vs. YiDong Electronics Technology |
| Changjiang Jinggong vs. Shuhua Sports Co | Changjiang Jinggong vs. Jiangsu Jinling Sports | Changjiang Jinggong vs. Olympic Circuit Technology | Changjiang Jinggong vs. China Sports Industry |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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