Correlation Between Masterwork Machinery and Hongrun Construction
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By analyzing existing cross correlation between Masterwork Machinery and Hongrun Construction Group, you can compare the effects of market volatilities on Masterwork Machinery and Hongrun Construction 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 Masterwork Machinery with a short position of Hongrun Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Masterwork Machinery and Hongrun Construction.
Diversification Opportunities for Masterwork Machinery and Hongrun Construction
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Masterwork and Hongrun is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Masterwork Machinery and Hongrun Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hongrun Construction and Masterwork Machinery 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 Masterwork Machinery are associated (or correlated) with Hongrun Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hongrun Construction has no effect on the direction of Masterwork Machinery i.e., Masterwork Machinery and Hongrun Construction go up and down completely randomly.
Pair Corralation between Masterwork Machinery and Hongrun Construction
Assuming the 90 days trading horizon Masterwork Machinery is expected to generate 1.92 times more return on investment than Hongrun Construction. However, Masterwork Machinery is 1.92 times more volatile than Hongrun Construction Group. It trades about 0.09 of its potential returns per unit of risk. Hongrun Construction Group is currently generating about 0.12 per unit of risk. If you would invest 563.00 in Masterwork Machinery on August 29, 2024 and sell it today you would earn a total of 46.00 from holding Masterwork Machinery or generate 8.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Masterwork Machinery vs. Hongrun Construction Group
Performance |
| Timeline |
| Masterwork Machinery |
| Hongrun Construction |
Masterwork Machinery and Hongrun Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Masterwork Machinery and Hongrun Construction
The main advantage of trading using opposite Masterwork Machinery and Hongrun Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Masterwork Machinery position performs unexpectedly, Hongrun Construction 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 Hongrun Construction will offset losses from the drop in Hongrun Construction's long position.| Masterwork Machinery vs. Biwin Storage Technology | Masterwork Machinery vs. PetroChina Co Ltd | Masterwork Machinery vs. Industrial and Commercial | Masterwork Machinery vs. China Construction Bank |
| Hongrun Construction vs. Ming Yang Smart | Hongrun Construction vs. 159681 | Hongrun Construction vs. 159005 | Hongrun Construction vs. Loctek Ergonomic Technology |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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