Correlation Between Hongrun Construction and 159681
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By analyzing existing cross correlation between Hongrun Construction Group and 159681, you can compare the effects of market volatilities on Hongrun Construction and 159681 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 159681. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hongrun Construction and 159681.
Diversification Opportunities for Hongrun Construction and 159681
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hongrun and 159681 is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Hongrun Construction Group and 159681 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 159681 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 159681. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 159681 has no effect on the direction of Hongrun Construction i.e., Hongrun Construction and 159681 go up and down completely randomly.
Pair Corralation between Hongrun Construction and 159681
Assuming the 90 days trading horizon Hongrun Construction is expected to generate 18.05 times less return on investment than 159681. But when comparing it to its historical volatility, Hongrun Construction Group is 1.17 times less risky than 159681. It trades about 0.01 of its potential returns per unit of risk. 159681 is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 90.00 in 159681 on December 1, 2024 and sell it today you would earn a total of 4.00 from holding 159681 or generate 4.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hongrun Construction Group vs. 159681
Performance |
| Timeline |
| Hongrun Construction |
| 159681 |
Hongrun Construction and 159681 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hongrun Construction and 159681
The main advantage of trading using opposite Hongrun Construction and 159681 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hongrun Construction position performs unexpectedly, 159681 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 159681 will offset losses from the drop in 159681's long position.| Hongrun Construction vs. Dhc Software Co | Hongrun Construction vs. Kuang Chi Technologies | Hongrun Construction vs. Inspur Software Co | Hongrun Construction vs. Sinofibers Technology Co |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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