Correlation Between Hunan Mendale and Guangdong Silvere
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By analyzing existing cross correlation between Hunan Mendale Hometextile and Guangdong Silvere Sci, you can compare the effects of market volatilities on Hunan Mendale and Guangdong Silvere 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 Guangdong Silvere. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Mendale and Guangdong Silvere.
Diversification Opportunities for Hunan Mendale and Guangdong Silvere
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hunan and Guangdong is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Mendale Hometextile and Guangdong Silvere Sci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Silvere Sci 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 Guangdong Silvere. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Silvere Sci has no effect on the direction of Hunan Mendale i.e., Hunan Mendale and Guangdong Silvere go up and down completely randomly.
Pair Corralation between Hunan Mendale and Guangdong Silvere
Assuming the 90 days trading horizon Hunan Mendale Hometextile is expected to generate 2.35 times more return on investment than Guangdong Silvere. However, Hunan Mendale is 2.35 times more volatile than Guangdong Silvere Sci. It trades about -0.02 of its potential returns per unit of risk. Guangdong Silvere Sci is currently generating about -0.33 per unit of risk. If you would invest 328.00 in Hunan Mendale Hometextile on October 16, 2024 and sell it today you would lose (24.00) from holding Hunan Mendale Hometextile or give up 7.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Mendale Hometextile vs. Guangdong Silvere Sci
Performance |
| Timeline |
| Hunan Mendale Hometextile |
| Guangdong Silvere Sci |
Hunan Mendale and Guangdong Silvere Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Mendale and Guangdong Silvere
The main advantage of trading using opposite Hunan Mendale and Guangdong Silvere positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Mendale position performs unexpectedly, Guangdong Silvere 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 Guangdong Silvere will offset losses from the drop in Guangdong Silvere's long position.| Hunan Mendale vs. Inspur Software Co | Hunan Mendale vs. Digiwin Software Co | Hunan Mendale vs. ROPEOK Technology Group | Hunan Mendale vs. Shuhua Sports Co |
| Guangdong Silvere vs. Changjiang Publishing Media | Guangdong Silvere vs. Jiangsu Phoenix Publishing | Guangdong Silvere vs. Kuangda Technology Group | Guangdong Silvere vs. China Publishing Media |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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