Correlation Between Hongrun Construction and Allwin Telecommunicatio
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By analyzing existing cross correlation between Hongrun Construction Group and Allwin Telecommunication Co, you can compare the effects of market volatilities on Hongrun Construction and Allwin Telecommunicatio 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 Hongrun Construction with a short position of Allwin Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hongrun Construction and Allwin Telecommunicatio.
Diversification Opportunities for Hongrun Construction and Allwin Telecommunicatio
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hongrun and Allwin is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Hongrun Construction Group and Allwin Telecommunication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allwin Telecommunicatio and Hongrun Construction 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 Hongrun Construction Group are associated (or correlated) with Allwin Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allwin Telecommunicatio has no effect on the direction of Hongrun Construction i.e., Hongrun Construction and Allwin Telecommunicatio go up and down completely randomly.
Pair Corralation between Hongrun Construction and Allwin Telecommunicatio
Assuming the 90 days trading horizon Hongrun Construction Group is expected to generate 0.84 times more return on investment than Allwin Telecommunicatio. However, Hongrun Construction Group is 1.19 times less risky than Allwin Telecommunicatio. It trades about 0.14 of its potential returns per unit of risk. Allwin Telecommunication Co is currently generating about -0.15 per unit of risk. If you would invest 406.00 in Hongrun Construction Group on August 28, 2024 and sell it today you would earn a total of 34.00 from holding Hongrun Construction Group or generate 8.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Hongrun Construction Group vs. Allwin Telecommunication Co
Performance |
| Timeline |
| Hongrun Construction |
| Allwin Telecommunicatio |
Hongrun Construction and Allwin Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hongrun Construction and Allwin Telecommunicatio
The main advantage of trading using opposite Hongrun Construction and Allwin Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hongrun Construction position performs unexpectedly, Allwin Telecommunicatio 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 Allwin Telecommunicatio will offset losses from the drop in Allwin Telecommunicatio's long position.| Hongrun Construction vs. Ming Yang Smart | Hongrun Construction vs. 159681 | Hongrun Construction vs. 159005 | Hongrun Construction vs. Loctek Ergonomic Technology |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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