Correlation Between Strait Innovation and Weihai Honglin
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By analyzing existing cross correlation between Strait Innovation Internet and Weihai Honglin Electronic, you can compare the effects of market volatilities on Strait Innovation and Weihai Honglin 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 Strait Innovation with a short position of Weihai Honglin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strait Innovation and Weihai Honglin.
Diversification Opportunities for Strait Innovation and Weihai Honglin
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Strait and Weihai is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Strait Innovation Internet and Weihai Honglin Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weihai Honglin Electronic and Strait Innovation 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 Strait Innovation Internet are associated (or correlated) with Weihai Honglin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weihai Honglin Electronic has no effect on the direction of Strait Innovation i.e., Strait Innovation and Weihai Honglin go up and down completely randomly.
Pair Corralation between Strait Innovation and Weihai Honglin
Assuming the 90 days trading horizon Strait Innovation Internet is expected to under-perform the Weihai Honglin. In addition to that, Strait Innovation is 1.04 times more volatile than Weihai Honglin Electronic. It trades about -0.06 of its total potential returns per unit of risk. Weihai Honglin Electronic is currently generating about 0.13 per unit of volatility. If you would invest 1,369 in Weihai Honglin Electronic on October 30, 2024 and sell it today you would earn a total of 238.00 from holding Weihai Honglin Electronic or generate 17.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Strait Innovation Internet vs. Weihai Honglin Electronic
Performance |
| Timeline |
| Strait Innovation |
| Weihai Honglin Electronic |
Strait Innovation and Weihai Honglin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strait Innovation and Weihai Honglin
The main advantage of trading using opposite Strait Innovation and Weihai Honglin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strait Innovation position performs unexpectedly, Weihai Honglin 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 Weihai Honglin will offset losses from the drop in Weihai Honglin's long position.| Strait Innovation vs. Hubei Geoway Investment | Strait Innovation vs. Harbin Hatou Investment | Strait Innovation vs. Hefei Metalforming Mach | Strait Innovation vs. Anhui Tongguan Copper |
| Weihai Honglin vs. Anhui Transport Consulting | Weihai Honglin vs. Duzhe Publishing Media | Weihai Honglin vs. ZYF Lopsking Aluminum | Weihai Honglin vs. Sino Platinum Metals 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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