Correlation Between HanS Laser and Hunan Investment
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By analyzing existing cross correlation between HanS Laser Tech and Hunan Investment Group, you can compare the effects of market volatilities on HanS Laser and Hunan Investment 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 HanS Laser with a short position of Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of HanS Laser and Hunan Investment.
Diversification Opportunities for HanS Laser and Hunan Investment
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between HanS and Hunan is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding HanS Laser Tech and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment and HanS Laser 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 HanS Laser Tech are associated (or correlated) with Hunan Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Investment has no effect on the direction of HanS Laser i.e., HanS Laser and Hunan Investment go up and down completely randomly.
Pair Corralation between HanS Laser and Hunan Investment
Assuming the 90 days trading horizon HanS Laser is expected to generate 3.78 times less return on investment than Hunan Investment. But when comparing it to its historical volatility, HanS Laser Tech is 1.03 times less risky than Hunan Investment. It trades about 0.06 of its potential returns per unit of risk. Hunan Investment Group is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 499.00 in Hunan Investment Group on September 5, 2024 and sell it today you would earn a total of 99.00 from holding Hunan Investment Group or generate 19.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HanS Laser Tech vs. Hunan Investment Group
Performance |
| Timeline |
| HanS Laser Tech |
| Hunan Investment |
HanS Laser and Hunan Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HanS Laser and Hunan Investment
The main advantage of trading using opposite HanS Laser and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HanS Laser position performs unexpectedly, Hunan Investment 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 Hunan Investment will offset losses from the drop in Hunan Investment's long position.| HanS Laser vs. Chengdu Kanghua Biological | HanS Laser vs. Beijing Wantai Biological | HanS Laser vs. Suzhou Novoprotein Scientific | HanS Laser vs. Aluminum Corp of |
| Hunan Investment vs. Cambricon Technologies Corp | Hunan Investment vs. Loongson Technology Corp | Hunan Investment vs. Shenzhen Fortune Trend | Hunan Investment vs. Chongqing Road Bridge |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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