Correlation Between 159681 and 159695
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By analyzing existing cross correlation between 159681 and 159695, you can compare the effects of market volatilities on 159681 and 159695 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 159695. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159681 and 159695.
Diversification Opportunities for 159681 and 159695
No risk reduction
The 3 months correlation between 159681 and 159695 is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding 159681 and 159695 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 159695 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 159695. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 159695 has no effect on the direction of 159681 i.e., 159681 and 159695 go up and down completely randomly.
Pair Corralation between 159681 and 159695
Assuming the 90 days trading horizon 159681 is expected to generate 1.06 times less return on investment than 159695. In addition to that, 159681 is 1.39 times more volatile than 159695. It trades about 0.03 of its total potential returns per unit of risk. 159695 is currently generating about 0.05 per unit of volatility. If you would invest 95.00 in 159695 on September 1, 2024 and sell it today you would earn a total of 23.00 from holding 159695 or generate 24.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.62% |
| Values | Daily Returns |
159681 vs. 159695
Performance |
| Timeline |
| 159681 |
| 159695 |
159681 and 159695 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159681 and 159695
The main advantage of trading using opposite 159681 and 159695 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159681 position performs unexpectedly, 159695 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 159695 will offset losses from the drop in 159695's long position.The idea behind 159681 and 159695 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.| 159695 vs. Shenzhen MTC Co | 159695 vs. Ming Yang Smart | 159695 vs. 159681 | 159695 vs. Loctek Ergonomic Technology |
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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