Correlation Between Hongrun Construction and China Publishing
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By analyzing existing cross correlation between Hongrun Construction Group and China Publishing Media, you can compare the effects of market volatilities on Hongrun Construction and China Publishing 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 China Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hongrun Construction and China Publishing.
Diversification Opportunities for Hongrun Construction and China Publishing
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hongrun and China is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Hongrun Construction Group and China Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Publishing Media 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 China Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Publishing Media has no effect on the direction of Hongrun Construction i.e., Hongrun Construction and China Publishing go up and down completely randomly.
Pair Corralation between Hongrun Construction and China Publishing
Assuming the 90 days trading horizon Hongrun Construction is expected to generate 11.67 times less return on investment than China Publishing. But when comparing it to its historical volatility, Hongrun Construction Group is 1.34 times less risky than China Publishing. It trades about 0.0 of its potential returns per unit of risk. China Publishing Media is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 963.00 in China Publishing Media on September 12, 2024 and sell it today you would lose (108.00) from holding China Publishing Media or give up 11.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hongrun Construction Group vs. China Publishing Media
Performance |
| Timeline |
| Hongrun Construction |
| China Publishing Media |
Hongrun Construction and China Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hongrun Construction and China Publishing
The main advantage of trading using opposite Hongrun Construction and China Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hongrun Construction position performs unexpectedly, China Publishing 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 China Publishing will offset losses from the drop in China Publishing's long position.| Hongrun Construction vs. Harvest Fund Management | Hongrun Construction vs. Hunan Mendale Hometextile | Hongrun Construction vs. Shanghai Shuixing Home | Hongrun Construction vs. Xiamen Goldenhome Co |
| China Publishing vs. Kweichow Moutai Co | China Publishing vs. Shenzhen Mindray Bio Medical | China Publishing vs. G bits Network Technology | China Publishing vs. Beijing Roborock 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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