Correlation Between Songz Automobile and Hengli Industrial
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By analyzing existing cross correlation between Songz Automobile Air and Hengli Industrial Development, you can compare the effects of market volatilities on Songz Automobile and Hengli Industrial 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 Songz Automobile with a short position of Hengli Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Songz Automobile and Hengli Industrial.
Diversification Opportunities for Songz Automobile and Hengli Industrial
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Songz and Hengli is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Songz Automobile Air and Hengli Industrial Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengli Industrial and Songz Automobile 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 Songz Automobile Air are associated (or correlated) with Hengli Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengli Industrial has no effect on the direction of Songz Automobile i.e., Songz Automobile and Hengli Industrial go up and down completely randomly.
Pair Corralation between Songz Automobile and Hengli Industrial
Assuming the 90 days trading horizon Songz Automobile Air is expected to generate 0.71 times more return on investment than Hengli Industrial. However, Songz Automobile Air is 1.4 times less risky than Hengli Industrial. It trades about -0.01 of its potential returns per unit of risk. Hengli Industrial Development is currently generating about -0.03 per unit of risk. If you would invest 761.00 in Songz Automobile Air on October 9, 2024 and sell it today you would lose (143.00) from holding Songz Automobile Air or give up 18.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Songz Automobile Air vs. Hengli Industrial Development
Performance |
| Timeline |
| Songz Automobile Air |
| Hengli Industrial |
Songz Automobile and Hengli Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Songz Automobile and Hengli Industrial
The main advantage of trading using opposite Songz Automobile and Hengli Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Songz Automobile position performs unexpectedly, Hengli Industrial 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 Hengli Industrial will offset losses from the drop in Hengli Industrial's long position.| Songz Automobile vs. Fuzhou Rockchip Electronics | Songz Automobile vs. Harbin Air Conditioning | Songz Automobile vs. Nantong Haixing Electronics | Songz Automobile vs. LianChuang Electronic Technology |
| Hengli Industrial vs. Ming Yang Smart | Hengli Industrial vs. 159681 | Hengli Industrial vs. 159005 | Hengli Industrial vs. Loctek Ergonomic 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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