Correlation Between Changchun and HMTNew Technical
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By analyzing existing cross correlation between Changchun UP Optotech and HMTNew Technical, you can compare the effects of market volatilities on Changchun and HMTNew Technical 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 Changchun with a short position of HMTNew Technical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun and HMTNew Technical.
Diversification Opportunities for Changchun and HMTNew Technical
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Changchun and HMTNew is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Changchun UP Optotech and HMTNew Technical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HMTNew Technical and Changchun 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 Changchun UP Optotech are associated (or correlated) with HMTNew Technical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HMTNew Technical has no effect on the direction of Changchun i.e., Changchun and HMTNew Technical go up and down completely randomly.
Pair Corralation between Changchun and HMTNew Technical
Assuming the 90 days trading horizon Changchun is expected to generate 2.92 times less return on investment than HMTNew Technical. In addition to that, Changchun is 1.08 times more volatile than HMTNew Technical. It trades about 0.03 of its total potential returns per unit of risk. HMTNew Technical is currently generating about 0.11 per unit of volatility. If you would invest 2,959 in HMTNew Technical on September 5, 2024 and sell it today you would earn a total of 263.00 from holding HMTNew Technical or generate 8.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun UP Optotech vs. HMTNew Technical
Performance |
| Timeline |
| Changchun UP Optotech |
| HMTNew Technical |
Changchun and HMTNew Technical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun and HMTNew Technical
The main advantage of trading using opposite Changchun and HMTNew Technical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun position performs unexpectedly, HMTNew Technical 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 HMTNew Technical will offset losses from the drop in HMTNew Technical's long position.| Changchun vs. Kweichow Moutai Co | Changchun vs. NAURA Technology Group | Changchun vs. APT Medical | Changchun vs. BYD Co Ltd |
| HMTNew Technical vs. Jointo Energy Investment | HMTNew Technical vs. Changchun UP Optotech | HMTNew Technical vs. Sinofibers Technology Co | HMTNew Technical vs. Nuode Investment 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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