Correlation Between Henzhen Zhaowei and Goldlok Toys
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By analyzing existing cross correlation between Henzhen Zhaowei Machinery and Goldlok Toys Holdings, you can compare the effects of market volatilities on Henzhen Zhaowei and Goldlok Toys 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 Henzhen Zhaowei with a short position of Goldlok Toys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henzhen Zhaowei and Goldlok Toys.
Diversification Opportunities for Henzhen Zhaowei and Goldlok Toys
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Henzhen and Goldlok is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Henzhen Zhaowei Machinery and Goldlok Toys Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldlok Toys Holdings and Henzhen Zhaowei 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 Henzhen Zhaowei Machinery are associated (or correlated) with Goldlok Toys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldlok Toys Holdings has no effect on the direction of Henzhen Zhaowei i.e., Henzhen Zhaowei and Goldlok Toys go up and down completely randomly.
Pair Corralation between Henzhen Zhaowei and Goldlok Toys
Assuming the 90 days trading horizon Henzhen Zhaowei Machinery is expected to generate 1.18 times more return on investment than Goldlok Toys. However, Henzhen Zhaowei is 1.18 times more volatile than Goldlok Toys Holdings. It trades about 0.04 of its potential returns per unit of risk. Goldlok Toys Holdings is currently generating about 0.02 per unit of risk. If you would invest 5,228 in Henzhen Zhaowei Machinery on August 31, 2024 and sell it today you would earn a total of 2,182 from holding Henzhen Zhaowei Machinery or generate 41.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.72% |
| Values | Daily Returns |
Henzhen Zhaowei Machinery vs. Goldlok Toys Holdings
Performance |
| Timeline |
| Henzhen Zhaowei Machinery |
| Goldlok Toys Holdings |
Henzhen Zhaowei and Goldlok Toys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henzhen Zhaowei and Goldlok Toys
The main advantage of trading using opposite Henzhen Zhaowei and Goldlok Toys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henzhen Zhaowei position performs unexpectedly, Goldlok Toys 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 Goldlok Toys will offset losses from the drop in Goldlok Toys' long position.| Henzhen Zhaowei vs. Cultural Investment Holdings | Henzhen Zhaowei vs. Gome Telecom Equipment | Henzhen Zhaowei vs. Bus Online Co | Henzhen Zhaowei vs. Holitech Technology Co |
| Goldlok Toys vs. China State Construction | Goldlok Toys vs. China Merchants Shekou | Goldlok Toys vs. Huafa Industrial Co | Goldlok Toys vs. China International Capital |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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