Correlation Between Hunan Mendale and DO Home
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By analyzing existing cross correlation between Hunan Mendale Hometextile and DO Home Collection, you can compare the effects of market volatilities on Hunan Mendale and DO Home 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 Hunan Mendale with a short position of DO Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Mendale and DO Home.
Diversification Opportunities for Hunan Mendale and DO Home
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hunan and 002798 is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Mendale Hometextile and DO Home Collection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DO Home Collection and Hunan Mendale 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 Hunan Mendale Hometextile are associated (or correlated) with DO Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DO Home Collection has no effect on the direction of Hunan Mendale i.e., Hunan Mendale and DO Home go up and down completely randomly.
Pair Corralation between Hunan Mendale and DO Home
Assuming the 90 days trading horizon Hunan Mendale Hometextile is expected to generate 0.98 times more return on investment than DO Home. However, Hunan Mendale Hometextile is 1.02 times less risky than DO Home. It trades about 0.29 of its potential returns per unit of risk. DO Home Collection is currently generating about 0.1 per unit of risk. If you would invest 264.00 in Hunan Mendale Hometextile on September 1, 2024 and sell it today you would earn a total of 56.00 from holding Hunan Mendale Hometextile or generate 21.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Mendale Hometextile vs. DO Home Collection
Performance |
| Timeline |
| Hunan Mendale Hometextile |
| DO Home Collection |
Hunan Mendale and DO Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Mendale and DO Home
The main advantage of trading using opposite Hunan Mendale and DO Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Mendale position performs unexpectedly, DO Home 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 DO Home will offset losses from the drop in DO Home's long position.| Hunan Mendale vs. Chengdu Kanghua Biological | Hunan Mendale vs. Beijing Wantai Biological | Hunan Mendale vs. Suzhou Novoprotein Scientific | Hunan Mendale vs. Aluminum Corp of |
| DO Home vs. Sinocat Environmental Technology | DO Home vs. Beijing SPC Environment | DO Home vs. Yankershop Food Co | DO Home vs. Anji Foodstuff 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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