Correlation Between Arrow Home and Flat Glass
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By analyzing existing cross correlation between Arrow Home Group and Flat Glass Group, you can compare the effects of market volatilities on Arrow Home and Flat Glass 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 Flat Glass. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arrow Home and Flat Glass.
Diversification Opportunities for Arrow Home and Flat Glass
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Arrow and Flat is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Arrow Home Group and Flat Glass Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flat Glass Group 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 Flat Glass. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flat Glass Group has no effect on the direction of Arrow Home i.e., Arrow Home and Flat Glass go up and down completely randomly.
Pair Corralation between Arrow Home and Flat Glass
Assuming the 90 days trading horizon Arrow Home Group is expected to under-perform the Flat Glass. But the stock apears to be less risky and, when comparing its historical volatility, Arrow Home Group is 1.75 times less risky than Flat Glass. The stock trades about -0.07 of its potential returns per unit of risk. The Flat Glass Group is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 2,600 in Flat Glass Group on September 3, 2024 and sell it today you would lose (50.00) from holding Flat Glass Group or give up 1.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arrow Home Group vs. Flat Glass Group
Performance |
| Timeline |
| Arrow Home Group |
| Flat Glass Group |
Arrow Home and Flat Glass Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arrow Home and Flat Glass
The main advantage of trading using opposite Arrow Home and Flat Glass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arrow Home position performs unexpectedly, Flat Glass 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 Flat Glass will offset losses from the drop in Flat Glass' long position.| Arrow Home vs. Der International Home | Arrow Home vs. Gansu Jiu Steel | Arrow Home vs. Ming Yang Smart | Arrow Home vs. Aba Chemicals Corp |
| Flat Glass vs. HeBei Jinniu Chemical | Flat Glass vs. Xilinmen Furniture Co | Flat Glass vs. Nanjing OLO Home | Flat Glass vs. Hunan Mendale Hometextile |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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