Correlation Between 159005 and 159792
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By analyzing existing cross correlation between 159005 and 159792, you can compare the effects of market volatilities on 159005 and 159792 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 159005 with a short position of 159792. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159005 and 159792.
Diversification Opportunities for 159005 and 159792
Very poor diversification
The 3 months correlation between 159005 and 159792 is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding 159005 and 159792 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 159792 and 159005 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 159005 are associated (or correlated) with 159792. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 159792 has no effect on the direction of 159005 i.e., 159005 and 159792 go up and down completely randomly.
Pair Corralation between 159005 and 159792
Assuming the 90 days trading horizon 159005 is expected to generate 0.02 times more return on investment than 159792. However, 159005 is 58.66 times less risky than 159792. It trades about 0.22 of its potential returns per unit of risk. 159792 is currently generating about -0.07 per unit of risk. If you would invest 9,987 in 159005 on August 27, 2024 and sell it today you would earn a total of 13.00 from holding 159005 or generate 0.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
159005 vs. 159792
Performance |
| Timeline |
| 159005 |
| 159792 |
159005 and 159792 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159005 and 159792
The main advantage of trading using opposite 159005 and 159792 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159005 position performs unexpectedly, 159792 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 159792 will offset losses from the drop in 159792's long position.The idea behind 159005 and 159792 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 159792 vs. Shenzhen MTC Co | 159792 vs. Ming Yang Smart | 159792 vs. Changzhou Almaden Co | 159792 vs. 159005 |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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