Correlation Between 37 Interactive and Hefei Metalforming
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By analyzing existing cross correlation between 37 Interactive Entertainment and Hefei Metalforming Mach, you can compare the effects of market volatilities on 37 Interactive and Hefei Metalforming 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 37 Interactive with a short position of Hefei Metalforming. Check out your portfolio center. Please also check ongoing floating volatility patterns of 37 Interactive and Hefei Metalforming.
Diversification Opportunities for 37 Interactive and Hefei Metalforming
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 002555 and Hefei is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding 37 Interactive Entertainment and Hefei Metalforming Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hefei Metalforming Mach and 37 Interactive 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 37 Interactive Entertainment are associated (or correlated) with Hefei Metalforming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hefei Metalforming Mach has no effect on the direction of 37 Interactive i.e., 37 Interactive and Hefei Metalforming go up and down completely randomly.
Pair Corralation between 37 Interactive and Hefei Metalforming
Assuming the 90 days trading horizon 37 Interactive is expected to generate 3.94 times less return on investment than Hefei Metalforming. But when comparing it to its historical volatility, 37 Interactive Entertainment is 1.24 times less risky than Hefei Metalforming. It trades about 0.03 of its potential returns per unit of risk. Hefei Metalforming Mach is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 725.00 in Hefei Metalforming Mach on August 30, 2024 and sell it today you would earn a total of 45.00 from holding Hefei Metalforming Mach or generate 6.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
37 Interactive Entertainment vs. Hefei Metalforming Mach
Performance |
| Timeline |
| 37 Interactive Enter |
| Hefei Metalforming Mach |
37 Interactive and Hefei Metalforming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 37 Interactive and Hefei Metalforming
The main advantage of trading using opposite 37 Interactive and Hefei Metalforming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 37 Interactive position performs unexpectedly, Hefei Metalforming 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 Hefei Metalforming will offset losses from the drop in Hefei Metalforming's long position.| 37 Interactive vs. Kweichow Moutai Co | 37 Interactive vs. Contemporary Amperex Technology | 37 Interactive vs. G bits Network Technology | 37 Interactive vs. BYD Co Ltd |
| Hefei Metalforming vs. China Petroleum Chemical | Hefei Metalforming vs. PetroChina Co Ltd | Hefei Metalforming vs. China State Construction | Hefei Metalforming vs. China Railway Group |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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