Correlation Between INKON Life and Hygon Information
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By analyzing existing cross correlation between INKON Life Technology and Hygon Information Technology, you can compare the effects of market volatilities on INKON Life and Hygon Information 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 INKON Life with a short position of Hygon Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of INKON Life and Hygon Information.
Diversification Opportunities for INKON Life and Hygon Information
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INKON and Hygon is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding INKON Life Technology and Hygon Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hygon Information and INKON Life 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 INKON Life Technology are associated (or correlated) with Hygon Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hygon Information has no effect on the direction of INKON Life i.e., INKON Life and Hygon Information go up and down completely randomly.
Pair Corralation between INKON Life and Hygon Information
Assuming the 90 days trading horizon INKON Life is expected to generate 3.15 times less return on investment than Hygon Information. But when comparing it to its historical volatility, INKON Life Technology is 1.1 times less risky than Hygon Information. It trades about 0.04 of its potential returns per unit of risk. Hygon Information Technology is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 7,854 in Hygon Information Technology on October 12, 2024 and sell it today you would earn a total of 6,966 from holding Hygon Information Technology or generate 88.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INKON Life Technology vs. Hygon Information Technology
Performance |
| Timeline |
| INKON Life Technology |
| Hygon Information |
INKON Life and Hygon Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INKON Life and Hygon Information
The main advantage of trading using opposite INKON Life and Hygon Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INKON Life position performs unexpectedly, Hygon Information 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 Hygon Information will offset losses from the drop in Hygon Information's long position.| INKON Life vs. Guangzhou Jinyi Media | INKON Life vs. Lontium Semiconductor Corp | INKON Life vs. Shandong Longquan Pipeline | INKON Life vs. Southern PublishingMedia Co |
| Hygon Information vs. Duzhe Publishing Media | Hygon Information vs. Beijing Enlight Media | Hygon Information vs. Xinjiang Baodi Mining | Hygon Information vs. Guangzhou Jinyi Media |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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