Correlation Between Songz Automobile and Hongrun Construction
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By analyzing existing cross correlation between Songz Automobile Air and Hongrun Construction Group, you can compare the effects of market volatilities on Songz Automobile and Hongrun Construction 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 Hongrun Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Songz Automobile and Hongrun Construction.
Diversification Opportunities for Songz Automobile and Hongrun Construction
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Songz and Hongrun is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Songz Automobile Air and Hongrun Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hongrun Construction 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 Hongrun Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hongrun Construction has no effect on the direction of Songz Automobile i.e., Songz Automobile and Hongrun Construction go up and down completely randomly.
Pair Corralation between Songz Automobile and Hongrun Construction
Assuming the 90 days trading horizon Songz Automobile is expected to generate 20.89 times less return on investment than Hongrun Construction. But when comparing it to its historical volatility, Songz Automobile Air is 1.23 times less risky than Hongrun Construction. It trades about 0.01 of its potential returns per unit of risk. Hongrun Construction Group is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 470.00 in Hongrun Construction Group on September 14, 2024 and sell it today you would earn a total of 42.00 from holding Hongrun Construction Group or generate 8.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Songz Automobile Air vs. Hongrun Construction Group
Performance |
| Timeline |
| Songz Automobile Air |
| Hongrun Construction |
Songz Automobile and Hongrun Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Songz Automobile and Hongrun Construction
The main advantage of trading using opposite Songz Automobile and Hongrun Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Songz Automobile position performs unexpectedly, Hongrun Construction 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 Hongrun Construction will offset losses from the drop in Hongrun Construction's long position.| Songz Automobile vs. BeiGene | Songz Automobile vs. Kweichow Moutai Co | Songz Automobile vs. Beijing Roborock Technology | Songz Automobile 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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