Correlation Between Longmaster Information and Hefei Metalforming
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By analyzing existing cross correlation between Longmaster Information Tech and Hefei Metalforming Mach, you can compare the effects of market volatilities on Longmaster Information and Hefei Metalforming 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 Hefei Metalforming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longmaster Information and Hefei Metalforming.
Diversification Opportunities for Longmaster Information and Hefei Metalforming
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Longmaster and Hefei is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Longmaster Information Tech and Hefei Metalforming Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hefei Metalforming Mach 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 Hefei Metalforming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hefei Metalforming Mach has no effect on the direction of Longmaster Information i.e., Longmaster Information and Hefei Metalforming go up and down completely randomly.
Pair Corralation between Longmaster Information and Hefei Metalforming
Assuming the 90 days trading horizon Longmaster Information Tech is expected to under-perform the Hefei Metalforming. But the stock apears to be less risky and, when comparing its historical volatility, Longmaster Information Tech is 1.18 times less risky than Hefei Metalforming. The stock trades about -0.44 of its potential returns per unit of risk. The Hefei Metalforming Mach is currently generating about -0.28 of returns per unit of risk over similar time horizon. If you would invest 842.00 in Hefei Metalforming Mach on October 12, 2024 and sell it today you would lose (155.00) from holding Hefei Metalforming Mach or give up 18.41% 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. Hefei Metalforming Mach
Performance |
| Timeline |
| Longmaster Information |
| Hefei Metalforming Mach |
Longmaster Information and Hefei Metalforming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Longmaster Information and Hefei Metalforming
The main advantage of trading using opposite Longmaster Information and Hefei Metalforming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longmaster Information position performs unexpectedly, Hefei Metalforming 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 Hefei Metalforming will offset losses from the drop in Hefei Metalforming's long position.| Longmaster Information vs. Omnijoi Media Corp | Longmaster Information vs. Guilin Seamild Foods | Longmaster Information vs. Shuhua Sports Co | Longmaster Information vs. Great Sun Foods Co |
| Hefei Metalforming vs. Ligao Foods CoLtd | Hefei Metalforming vs. Shantou Wanshun Package | Hefei Metalforming vs. Longmaster Information Tech | Hefei Metalforming vs. Dawning Information Industry |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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