Correlation Between HanS Laser and Arrow Home
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By analyzing existing cross correlation between HanS Laser Tech and Arrow Home Group, you can compare the effects of market volatilities on HanS Laser and Arrow Home 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 Arrow Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of HanS Laser and Arrow Home.
Diversification Opportunities for HanS Laser and Arrow Home
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between HanS and Arrow is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding HanS Laser Tech and Arrow Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arrow Home Group 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 Arrow Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arrow Home Group has no effect on the direction of HanS Laser i.e., HanS Laser and Arrow Home go up and down completely randomly.
Pair Corralation between HanS Laser and Arrow Home
Assuming the 90 days trading horizon HanS Laser Tech is expected to generate 1.74 times more return on investment than Arrow Home. However, HanS Laser is 1.74 times more volatile than Arrow Home Group. It trades about 0.11 of its potential returns per unit of risk. Arrow Home Group is currently generating about -0.27 per unit of risk. If you would invest 2,457 in HanS Laser Tech on August 26, 2024 and sell it today you would earn a total of 193.00 from holding HanS Laser Tech or generate 7.86% 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. Arrow Home Group
Performance |
| Timeline |
| HanS Laser Tech |
| Arrow Home Group |
HanS Laser and Arrow Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HanS Laser and Arrow Home
The main advantage of trading using opposite HanS Laser and Arrow Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HanS Laser position performs unexpectedly, Arrow Home 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 Arrow Home will offset losses from the drop in Arrow Home's long position.| HanS Laser vs. Biwin Storage Technology | HanS Laser vs. PetroChina Co Ltd | HanS Laser vs. Industrial and Commercial | HanS Laser vs. China Construction Bank |
| Arrow Home vs. Zhongtong Guomai Communication | Arrow Home vs. Guangdong Shenglu Telecommunication | Arrow Home vs. HanS Laser Tech | Arrow Home vs. Changchun Faway Automobile |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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