Correlation Between BlueFocus Communication and Hangzhou Pinming
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By analyzing existing cross correlation between BlueFocus Communication Group and Hangzhou Pinming Software, you can compare the effects of market volatilities on BlueFocus Communication and Hangzhou Pinming 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 BlueFocus Communication with a short position of Hangzhou Pinming. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlueFocus Communication and Hangzhou Pinming.
Diversification Opportunities for BlueFocus Communication and Hangzhou Pinming
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BlueFocus and Hangzhou is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding BlueFocus Communication Group and Hangzhou Pinming Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Pinming Software and BlueFocus Communication 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 BlueFocus Communication Group are associated (or correlated) with Hangzhou Pinming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Pinming Software has no effect on the direction of BlueFocus Communication i.e., BlueFocus Communication and Hangzhou Pinming go up and down completely randomly.
Pair Corralation between BlueFocus Communication and Hangzhou Pinming
Assuming the 90 days trading horizon BlueFocus Communication Group is expected to generate 1.07 times more return on investment than Hangzhou Pinming. However, BlueFocus Communication is 1.07 times more volatile than Hangzhou Pinming Software. It trades about 0.04 of its potential returns per unit of risk. Hangzhou Pinming Software is currently generating about 0.03 per unit of risk. If you would invest 904.00 in BlueFocus Communication Group on September 12, 2024 and sell it today you would earn a total of 256.00 from holding BlueFocus Communication Group or generate 28.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BlueFocus Communication Group vs. Hangzhou Pinming Software
Performance |
| Timeline |
| BlueFocus Communication |
| Hangzhou Pinming Software |
BlueFocus Communication and Hangzhou Pinming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BlueFocus Communication and Hangzhou Pinming
The main advantage of trading using opposite BlueFocus Communication and Hangzhou Pinming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlueFocus Communication position performs unexpectedly, Hangzhou Pinming 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 Hangzhou Pinming will offset losses from the drop in Hangzhou Pinming's long position.The idea behind BlueFocus Communication Group and Hangzhou Pinming Software 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.
| Hangzhou Pinming vs. Gansu Jiu Steel | Hangzhou Pinming vs. Shandong Mining Machinery | Hangzhou Pinming vs. Aba Chemicals Corp | Hangzhou Pinming vs. BlueFocus Communication Group |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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