Correlation Between Hangzhou Weiguang and Do Fluoride
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By analyzing existing cross correlation between Hangzhou Weiguang Electronic and Do Fluoride Chemicals Co, you can compare the effects of market volatilities on Hangzhou Weiguang and Do Fluoride 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 Hangzhou Weiguang with a short position of Do Fluoride. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Weiguang and Do Fluoride.
Diversification Opportunities for Hangzhou Weiguang and Do Fluoride
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hangzhou and 002407 is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Weiguang Electronic and Do Fluoride Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Do Fluoride Chemicals and Hangzhou Weiguang 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 Hangzhou Weiguang Electronic are associated (or correlated) with Do Fluoride. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Do Fluoride Chemicals has no effect on the direction of Hangzhou Weiguang i.e., Hangzhou Weiguang and Do Fluoride go up and down completely randomly.
Pair Corralation between Hangzhou Weiguang and Do Fluoride
Assuming the 90 days trading horizon Hangzhou Weiguang is expected to generate 1.53 times less return on investment than Do Fluoride. But when comparing it to its historical volatility, Hangzhou Weiguang Electronic is 1.46 times less risky than Do Fluoride. It trades about 0.1 of its potential returns per unit of risk. Do Fluoride Chemicals Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,250 in Do Fluoride Chemicals Co on August 29, 2024 and sell it today you would earn a total of 89.00 from holding Do Fluoride Chemicals Co or generate 7.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Weiguang Electronic vs. Do Fluoride Chemicals Co
Performance |
| Timeline |
| Hangzhou Weiguang |
| Do Fluoride Chemicals |
Hangzhou Weiguang and Do Fluoride Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Weiguang and Do Fluoride
The main advantage of trading using opposite Hangzhou Weiguang and Do Fluoride positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Weiguang position performs unexpectedly, Do Fluoride 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 Do Fluoride will offset losses from the drop in Do Fluoride's long position.| Hangzhou Weiguang vs. Industrial and Commercial | Hangzhou Weiguang vs. China Construction Bank | Hangzhou Weiguang vs. Agricultural Bank of | Hangzhou Weiguang vs. Bank of China |
| Do Fluoride vs. Shanghai Broadband Technology | Do Fluoride vs. Heilongjiang Transport Development | Do Fluoride vs. Silkroad Visual Technology | Do Fluoride vs. Hangzhou Weiguang Electronic |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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