Correlation Between Longmaster Information and Hangzhou Pinming
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By analyzing existing cross correlation between Longmaster Information Tech and Hangzhou Pinming Software, you can compare the effects of market volatilities on Longmaster Information and Hangzhou Pinming 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 Hangzhou Pinming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longmaster Information and Hangzhou Pinming.
Diversification Opportunities for Longmaster Information and Hangzhou Pinming
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Longmaster and Hangzhou is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Longmaster Information Tech and Hangzhou Pinming Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Pinming Software 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 Hangzhou Pinming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Pinming Software has no effect on the direction of Longmaster Information i.e., Longmaster Information and Hangzhou Pinming go up and down completely randomly.
Pair Corralation between Longmaster Information and Hangzhou Pinming
Assuming the 90 days trading horizon Longmaster Information Tech is expected to generate 1.24 times more return on investment than Hangzhou Pinming. However, Longmaster Information is 1.24 times more volatile than Hangzhou Pinming Software. It trades about 0.04 of its potential returns per unit of risk. Hangzhou Pinming Software is currently generating about 0.04 per unit of risk. If you would invest 1,141 in Longmaster Information Tech on September 14, 2024 and sell it today you would earn a total of 661.00 from holding Longmaster Information Tech or generate 57.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Longmaster Information Tech vs. Hangzhou Pinming Software
Performance |
| Timeline |
| Longmaster Information |
| Hangzhou Pinming Software |
Longmaster Information and Hangzhou Pinming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Longmaster Information and Hangzhou Pinming
The main advantage of trading using opposite Longmaster Information and Hangzhou Pinming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longmaster Information position performs unexpectedly, Hangzhou Pinming 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 Hangzhou Pinming will offset losses from the drop in Hangzhou Pinming's long position.| Longmaster Information vs. China Mobile Limited | Longmaster Information vs. Agricultural Bank of | Longmaster Information vs. Industrial and Commercial | Longmaster Information vs. China State Construction |
| Hangzhou Pinming vs. Suzhou Weizhixiang Food | Hangzhou Pinming vs. Focus Media Information | Hangzhou Pinming vs. Longmaster Information Tech | Hangzhou Pinming vs. New Hope Dairy |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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