Correlation Between Longmaster Information and Shandong Homey
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By analyzing existing cross correlation between Longmaster Information Tech and Shandong Homey Aquatic, you can compare the effects of market volatilities on Longmaster Information and Shandong Homey 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 Longmaster Information with a short position of Shandong Homey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longmaster Information and Shandong Homey.
Diversification Opportunities for Longmaster Information and Shandong Homey
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Longmaster and Shandong is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Longmaster Information Tech and Shandong Homey Aquatic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Homey Aquatic and Longmaster Information 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 Longmaster Information Tech are associated (or correlated) with Shandong Homey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Homey Aquatic has no effect on the direction of Longmaster Information i.e., Longmaster Information and Shandong Homey go up and down completely randomly.
Pair Corralation between Longmaster Information and Shandong Homey
Assuming the 90 days trading horizon Longmaster Information Tech is expected to generate 0.82 times more return on investment than Shandong Homey. However, Longmaster Information Tech is 1.21 times less risky than Shandong Homey. It trades about -0.46 of its potential returns per unit of risk. Shandong Homey Aquatic is currently generating about -0.45 per unit of risk. If you would invest 1,802 in Longmaster Information Tech on October 13, 2024 and sell it today you would lose (452.00) from holding Longmaster Information Tech or give up 25.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Longmaster Information Tech vs. Shandong Homey Aquatic
Performance |
| Timeline |
| Longmaster Information |
| Shandong Homey Aquatic |
Longmaster Information and Shandong Homey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Longmaster Information and Shandong Homey
The main advantage of trading using opposite Longmaster Information and Shandong Homey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longmaster Information position performs unexpectedly, Shandong Homey 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 Shandong Homey will offset losses from the drop in Shandong Homey's long position.| Longmaster Information vs. Shenwu Energy Saving | Longmaster Information vs. Ping An Insurance | Longmaster Information vs. Financial Street Holdings | Longmaster Information vs. Guilin Seamild Foods |
| Shandong Homey vs. Impulse Qingdao Health | Shandong Homey vs. Longmaster Information Tech | Shandong Homey vs. Lotus Health Group | Shandong Homey vs. Healthcare Co |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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