Correlation Between 159681 and Hengerda New
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By analyzing existing cross correlation between 159681 and Hengerda New Materials, you can compare the effects of market volatilities on 159681 and Hengerda New 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 Hengerda New. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159681 and Hengerda New.
Diversification Opportunities for 159681 and Hengerda New
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 159681 and Hengerda is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding 159681 and Hengerda New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengerda New Materials 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 Hengerda New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengerda New Materials has no effect on the direction of 159681 i.e., 159681 and Hengerda New go up and down completely randomly.
Pair Corralation between 159681 and Hengerda New
Assuming the 90 days trading horizon 159681 is expected to generate 0.52 times more return on investment than Hengerda New. However, 159681 is 1.93 times less risky than Hengerda New. It trades about -0.39 of its potential returns per unit of risk. Hengerda New Materials is currently generating about -0.28 per unit of risk. If you would invest 100.00 in 159681 on October 7, 2024 and sell it today you would lose (11.00) from holding 159681 or give up 11.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
159681 vs. Hengerda New Materials
Performance |
| Timeline |
| 159681 |
| Hengerda New Materials |
159681 and Hengerda New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159681 and Hengerda New
The main advantage of trading using opposite 159681 and Hengerda New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159681 position performs unexpectedly, Hengerda New 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 Hengerda New will offset losses from the drop in Hengerda New's long position.The idea behind 159681 and Hengerda New Materials 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.| Hengerda New vs. BeiGene | Hengerda New vs. G bits Network Technology | Hengerda New vs. China Mobile Limited | Hengerda New vs. Gansu Jiu Steel |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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