Correlation Between 159681 and HanS Laser
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By analyzing existing cross correlation between 159681 and HanS Laser Tech, you can compare the effects of market volatilities on 159681 and HanS Laser 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 159681 with a short position of HanS Laser. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159681 and HanS Laser.
Diversification Opportunities for 159681 and HanS Laser
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 159681 and HanS is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding 159681 and HanS Laser Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HanS Laser Tech and 159681 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 159681 are associated (or correlated) with HanS Laser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HanS Laser Tech has no effect on the direction of 159681 i.e., 159681 and HanS Laser go up and down completely randomly.
Pair Corralation between 159681 and HanS Laser
Assuming the 90 days trading horizon 159681 is expected to generate 1.59 times less return on investment than HanS Laser. But when comparing it to its historical volatility, 159681 is 1.39 times less risky than HanS Laser. It trades about 0.05 of its potential returns per unit of risk. HanS Laser Tech is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,555 in HanS Laser Tech on September 3, 2024 and sell it today you would earn a total of 79.00 from holding HanS Laser Tech or generate 3.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
159681 vs. HanS Laser Tech
Performance |
| Timeline |
| 159681 |
| HanS Laser Tech |
159681 and HanS Laser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159681 and HanS Laser
The main advantage of trading using opposite 159681 and HanS Laser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159681 position performs unexpectedly, HanS Laser 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 HanS Laser will offset losses from the drop in HanS Laser's long position.The idea behind 159681 and HanS Laser Tech 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.| HanS Laser vs. Cultural Investment Holdings | HanS Laser vs. Gome Telecom Equipment | HanS Laser vs. Bus Online Co | HanS Laser vs. Holitech Technology Co |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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