Correlation Between 159005 and HOB Biotech
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By analyzing existing cross correlation between 159005 and HOB Biotech Group, you can compare the effects of market volatilities on 159005 and HOB Biotech 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 HOB Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159005 and HOB Biotech.
Diversification Opportunities for 159005 and HOB Biotech
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 159005 and HOB is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding 159005 and HOB Biotech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HOB Biotech Group 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 HOB Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HOB Biotech Group has no effect on the direction of 159005 i.e., 159005 and HOB Biotech go up and down completely randomly.
Pair Corralation between 159005 and HOB Biotech
Assuming the 90 days trading horizon 159005 is expected to generate 0.0 times more return on investment than HOB Biotech. However, 159005 is 254.79 times less risky than HOB Biotech. It trades about 0.21 of its potential returns per unit of risk. HOB Biotech Group is currently generating about -0.17 per unit of risk. If you would invest 9,988 in 159005 on September 19, 2024 and sell it today you would earn a total of 12.00 from holding 159005 or generate 0.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
159005 vs. HOB Biotech Group
Performance |
| Timeline |
| 159005 |
| HOB Biotech Group |
159005 and HOB Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159005 and HOB Biotech
The main advantage of trading using opposite 159005 and HOB Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159005 position performs unexpectedly, HOB Biotech 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 HOB Biotech will offset losses from the drop in HOB Biotech's long position.The idea behind 159005 and HOB Biotech Group 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.| HOB Biotech vs. Industrial and Commercial | HOB Biotech vs. Kweichow Moutai Co | HOB Biotech vs. Agricultural Bank of | HOB Biotech vs. China Mobile Limited |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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