Correlation Between Inner Mongolia and Oppein Home
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By analyzing existing cross correlation between Inner Mongolia Furui and Oppein Home Group, you can compare the effects of market volatilities on Inner Mongolia and Oppein Home 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 Inner Mongolia with a short position of Oppein Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inner Mongolia and Oppein Home.
Diversification Opportunities for Inner Mongolia and Oppein Home
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Inner and Oppein is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Inner Mongolia Furui and Oppein Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppein Home Group and Inner Mongolia 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 Inner Mongolia Furui are associated (or correlated) with Oppein Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppein Home Group has no effect on the direction of Inner Mongolia i.e., Inner Mongolia and Oppein Home go up and down completely randomly.
Pair Corralation between Inner Mongolia and Oppein Home
Assuming the 90 days trading horizon Inner Mongolia Furui is expected to generate 0.9 times more return on investment than Oppein Home. However, Inner Mongolia Furui is 1.12 times less risky than Oppein Home. It trades about 0.22 of its potential returns per unit of risk. Oppein Home Group is currently generating about -0.2 per unit of risk. If you would invest 3,029 in Inner Mongolia Furui on November 8, 2024 and sell it today you would earn a total of 271.00 from holding Inner Mongolia Furui or generate 8.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inner Mongolia Furui vs. Oppein Home Group
Performance |
| Timeline |
| Inner Mongolia Furui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Oppein Home Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Inner Mongolia and Oppein Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inner Mongolia and Oppein Home
The main advantage of trading using opposite Inner Mongolia and Oppein Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inner Mongolia position performs unexpectedly, Oppein Home 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 Oppein Home will offset losses from the drop in Oppein Home's long position.The idea behind Inner Mongolia Furui and Oppein Home 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.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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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