Correlation Between Hunan Mendale and A Zenith
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By analyzing existing cross correlation between Hunan Mendale Hometextile and A Zenith Home Furnishings, you can compare the effects of market volatilities on Hunan Mendale and A Zenith 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 A Zenith. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Mendale and A Zenith.
Diversification Opportunities for Hunan Mendale and A Zenith
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hunan and 603389 is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Mendale Hometextile and A Zenith Home Furnishings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A Zenith Home 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 A Zenith. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A Zenith Home has no effect on the direction of Hunan Mendale i.e., Hunan Mendale and A Zenith go up and down completely randomly.
Pair Corralation between Hunan Mendale and A Zenith
Assuming the 90 days trading horizon Hunan Mendale Hometextile is expected to generate 1.98 times more return on investment than A Zenith. However, Hunan Mendale is 1.98 times more volatile than A Zenith Home Furnishings. It trades about 0.14 of its potential returns per unit of risk. A Zenith Home Furnishings is currently generating about -0.37 per unit of risk. If you would invest 287.00 in Hunan Mendale Hometextile on October 23, 2024 and sell it today you would earn a total of 44.00 from holding Hunan Mendale Hometextile or generate 15.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Mendale Hometextile vs. A Zenith Home Furnishings
Performance |
| Timeline |
| Hunan Mendale Hometextile |
| A Zenith Home |
Hunan Mendale and A Zenith Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Mendale and A Zenith
The main advantage of trading using opposite Hunan Mendale and A Zenith positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Mendale position performs unexpectedly, A Zenith 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 A Zenith will offset losses from the drop in A Zenith's long position.| Hunan Mendale vs. Kingclean Electric Co | Hunan Mendale vs. Dhc Software Co | Hunan Mendale vs. Sinofibers Technology Co | Hunan Mendale vs. Shaanxi Meineng Clean |
| A Zenith vs. BeiGene | A Zenith vs. Kweichow Moutai Co | A Zenith vs. Beijing Roborock Technology | A Zenith vs. G bits Network 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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