Correlation Between HanS Laser and Hunan Nanling
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By analyzing existing cross correlation between HanS Laser Tech and Hunan Nanling Industrial, you can compare the effects of market volatilities on HanS Laser and Hunan Nanling 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 Nanling. Check out your portfolio center. Please also check ongoing floating volatility patterns of HanS Laser and Hunan Nanling.
Diversification Opportunities for HanS Laser and Hunan Nanling
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between HanS and Hunan is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding HanS Laser Tech and Hunan Nanling Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Nanling Industrial 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 Nanling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Nanling Industrial has no effect on the direction of HanS Laser i.e., HanS Laser and Hunan Nanling go up and down completely randomly.
Pair Corralation between HanS Laser and Hunan Nanling
Assuming the 90 days trading horizon HanS Laser Tech is expected to generate 1.2 times more return on investment than Hunan Nanling. However, HanS Laser is 1.2 times more volatile than Hunan Nanling Industrial. It trades about 0.03 of its potential returns per unit of risk. Hunan Nanling Industrial is currently generating about -0.07 per unit of risk. If you would invest 2,588 in HanS Laser Tech on September 3, 2024 and sell it today you would earn a total of 46.00 from holding HanS Laser Tech or generate 1.78% 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 Nanling Industrial
Performance |
| Timeline |
| HanS Laser Tech |
| Hunan Nanling Industrial |
HanS Laser and Hunan Nanling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HanS Laser and Hunan Nanling
The main advantage of trading using opposite HanS Laser and Hunan Nanling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HanS Laser position performs unexpectedly, Hunan Nanling 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 Nanling will offset losses from the drop in Hunan Nanling's long position.| HanS Laser vs. Cultural Investment Holdings | HanS Laser vs. Gome Telecom Equipment | HanS Laser vs. Bus Online Co | HanS Laser vs. Holitech Technology Co |
| Hunan Nanling vs. Beijing Jiaman Dress | Hunan Nanling vs. Lingyuan Iron Steel | Hunan Nanling vs. Gansu Jiu Steel | Hunan Nanling vs. Jinling Hotel Corp |
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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