Correlation Between Hengxin Mobile and F5 Networks
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By analyzing existing cross correlation between Hengxin Mobile Business and F5 Networks, you can compare the effects of market volatilities on Hengxin Mobile and F5 Networks 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 Hengxin Mobile with a short position of F5 Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengxin Mobile and F5 Networks.
Diversification Opportunities for Hengxin Mobile and F5 Networks
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hengxin and FFIV is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Hengxin Mobile Business and F5 Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on F5 Networks and Hengxin Mobile 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 Hengxin Mobile Business are associated (or correlated) with F5 Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of F5 Networks has no effect on the direction of Hengxin Mobile i.e., Hengxin Mobile and F5 Networks go up and down completely randomly.
Pair Corralation between Hengxin Mobile and F5 Networks
Assuming the 90 days trading horizon Hengxin Mobile Business is expected to generate 3.18 times more return on investment than F5 Networks. However, Hengxin Mobile is 3.18 times more volatile than F5 Networks. It trades about 0.1 of its potential returns per unit of risk. F5 Networks is currently generating about 0.24 per unit of risk. If you would invest 650.00 in Hengxin Mobile Business on November 18, 2024 and sell it today you would earn a total of 169.00 from holding Hengxin Mobile Business or generate 26.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.72% |
| Values | Daily Returns |
Hengxin Mobile Business vs. F5 Networks
Performance |
| Timeline |
| Hengxin Mobile Business |
| F5 Networks |
Hengxin Mobile and F5 Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengxin Mobile and F5 Networks
The main advantage of trading using opposite Hengxin Mobile and F5 Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengxin Mobile position performs unexpectedly, F5 Networks 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 F5 Networks will offset losses from the drop in F5 Networks' long position.| Hengxin Mobile vs. Sichuan Yahua Industrial | Hengxin Mobile vs. Suzhou Industrial Park | Hengxin Mobile vs. Guangzhou Haozhi Industrial | Hengxin Mobile vs. Shandong Hongchuang Aluminum |
| F5 Networks vs. VeriSign | F5 Networks vs. Check Point Software | F5 Networks vs. Qualys Inc | F5 Networks vs. CyberArk Software |
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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