Correlation Between Western Metal and HUAQIN TECHNOLOGY
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By analyzing existing cross correlation between Western Metal Materials and HUAQIN TECHNOLOGY LTD, you can compare the effects of market volatilities on Western Metal 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 Western Metal with a short position of HUAQIN TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Metal and HUAQIN TECHNOLOGY.
Diversification Opportunities for Western Metal and HUAQIN TECHNOLOGY
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Western and HUAQIN is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Western Metal Materials 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 Western Metal 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 Western Metal Materials 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 Western Metal i.e., Western Metal and HUAQIN TECHNOLOGY go up and down completely randomly.
Pair Corralation between Western Metal and HUAQIN TECHNOLOGY
Assuming the 90 days trading horizon Western Metal is expected to generate 1.39 times less return on investment than HUAQIN TECHNOLOGY. But when comparing it to its historical volatility, Western Metal Materials is 1.0 times less risky than HUAQIN TECHNOLOGY. It trades about 0.03 of its potential returns per unit of risk. HUAQIN TECHNOLOGY LTD is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 5,753 in HUAQIN TECHNOLOGY LTD on September 3, 2024 and sell it today you would earn a total of 502.00 from holding HUAQIN TECHNOLOGY LTD or generate 8.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Metal Materials vs. HUAQIN TECHNOLOGY LTD
Performance |
| Timeline |
| Western Metal Materials |
| HUAQIN TECHNOLOGY LTD |
Western Metal and HUAQIN TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Metal and HUAQIN TECHNOLOGY
The main advantage of trading using opposite Western Metal and HUAQIN TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Metal 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.| Western Metal vs. Haima Automobile Group | Western Metal vs. FSPG Hi Tech Co | Western Metal vs. Tianjin Hi Tech Development | Western Metal vs. Peoples Insurance of |
| HUAQIN TECHNOLOGY vs. Industrial and Commercial | HUAQIN TECHNOLOGY vs. Kweichow Moutai Co | HUAQIN TECHNOLOGY vs. Agricultural Bank of | HUAQIN TECHNOLOGY vs. China Mobile Limited |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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