Correlation Between HanS Laser and HUAQIN TECHNOLOGY
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By analyzing existing cross correlation between HanS Laser Tech and HUAQIN TECHNOLOGY LTD, you can compare the effects of market volatilities on HanS Laser and HUAQIN TECHNOLOGY 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 HUAQIN TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of HanS Laser and HUAQIN TECHNOLOGY.
Diversification Opportunities for HanS Laser and HUAQIN TECHNOLOGY
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HanS and HUAQIN is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding HanS Laser Tech and HUAQIN TECHNOLOGY LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUAQIN TECHNOLOGY LTD 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 HUAQIN TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUAQIN TECHNOLOGY LTD has no effect on the direction of HanS Laser i.e., HanS Laser and HUAQIN TECHNOLOGY go up and down completely randomly.
Pair Corralation between HanS Laser and HUAQIN TECHNOLOGY
Assuming the 90 days trading horizon HanS Laser is expected to generate 5.06 times less return on investment than HUAQIN TECHNOLOGY. But when comparing it to its historical volatility, HanS Laser Tech is 1.25 times less risky than HUAQIN TECHNOLOGY. It trades about 0.04 of its potential returns per unit of risk. HUAQIN TECHNOLOGY LTD is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 5,856 in HUAQIN TECHNOLOGY LTD on October 25, 2024 and sell it today you would earn a total of 2,109 from holding HUAQIN TECHNOLOGY LTD or generate 36.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HanS Laser Tech vs. HUAQIN TECHNOLOGY LTD
Performance |
| Timeline |
| HanS Laser Tech |
| HUAQIN TECHNOLOGY LTD |
HanS Laser and HUAQIN TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HanS Laser and HUAQIN TECHNOLOGY
The main advantage of trading using opposite HanS Laser and HUAQIN TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HanS Laser position performs unexpectedly, HUAQIN TECHNOLOGY 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 HUAQIN TECHNOLOGY will offset losses from the drop in HUAQIN TECHNOLOGY's long position.| HanS Laser vs. Changchun Engley Automobile | HanS Laser vs. Beijing Enlight Media | HanS Laser vs. CIMC Vehicles Co | HanS Laser vs. Thinkingdom Media Group |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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