Correlation Between HanS Laser and Long Yuan
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By analyzing existing cross correlation between HanS Laser Tech and Long Yuan Construction, you can compare the effects of market volatilities on HanS Laser and Long Yuan 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 Long Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of HanS Laser and Long Yuan.
Diversification Opportunities for HanS Laser and Long Yuan
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HanS and Long is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding HanS Laser Tech and Long Yuan Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Long Yuan Construction 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 Long Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Long Yuan Construction has no effect on the direction of HanS Laser i.e., HanS Laser and Long Yuan go up and down completely randomly.
Pair Corralation between HanS Laser and Long Yuan
Assuming the 90 days trading horizon HanS Laser Tech is expected to generate 0.81 times more return on investment than Long Yuan. However, HanS Laser Tech is 1.24 times less risky than Long Yuan. It trades about -0.1 of its potential returns per unit of risk. Long Yuan Construction is currently generating about -0.17 per unit of risk. If you would invest 2,798 in HanS Laser Tech on October 22, 2024 and sell it today you would lose (274.00) from holding HanS Laser Tech or give up 9.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HanS Laser Tech vs. Long Yuan Construction
Performance |
| Timeline |
| HanS Laser Tech |
| Long Yuan Construction |
HanS Laser and Long Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HanS Laser and Long Yuan
The main advantage of trading using opposite HanS Laser and Long Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HanS Laser position performs unexpectedly, Long Yuan 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 Long Yuan will offset losses from the drop in Long Yuan's long position.| HanS Laser vs. Konfoong Materials International | HanS Laser vs. Keda Clean Energy | HanS Laser vs. Zhongjing Food Co | HanS Laser vs. Kangxin New Materials |
| Long Yuan vs. Guangzhou KingTeller Technology | Long Yuan vs. Luyin Investment Group | Long Yuan vs. Jiujiang Shanshui Technology | Long Yuan vs. HanS Laser Tech |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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