Correlation Between Strait Innovation and Oppein Home
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By analyzing existing cross correlation between Strait Innovation Internet and Oppein Home Group, you can compare the effects of market volatilities on Strait Innovation and Oppein Home 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 Oppein Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strait Innovation and Oppein Home.
Diversification Opportunities for Strait Innovation and Oppein Home
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Strait and Oppein is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Strait Innovation Internet and Oppein Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppein Home Group 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 Oppein Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppein Home Group has no effect on the direction of Strait Innovation i.e., Strait Innovation and Oppein Home go up and down completely randomly.
Pair Corralation between Strait Innovation and Oppein Home
Assuming the 90 days trading horizon Strait Innovation Internet is expected to generate 1.42 times more return on investment than Oppein Home. However, Strait Innovation is 1.42 times more volatile than Oppein Home Group. It trades about 0.06 of its potential returns per unit of risk. Oppein Home Group is currently generating about -0.09 per unit of risk. If you would invest 274.00 in Strait Innovation Internet on November 3, 2024 and sell it today you would earn a total of 9.00 from holding Strait Innovation Internet or generate 3.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Strait Innovation Internet vs. Oppein Home Group
Performance |
| Timeline |
| Strait Innovation |
| Oppein Home Group |
Strait Innovation and Oppein Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strait Innovation and Oppein Home
The main advantage of trading using opposite Strait Innovation and Oppein Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strait Innovation position performs unexpectedly, Oppein Home 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 Oppein Home will offset losses from the drop in Oppein Home's long position.| Strait Innovation vs. China Sports Industry | Strait Innovation vs. Wuxi Double Elephant | Strait Innovation vs. Jilin OLED Material | Strait Innovation vs. Super Dragon Engineering Plastics |
| Oppein Home vs. Eit Environmental Development | Oppein Home vs. Wangneng Environment Co | Oppein Home vs. Tongxing Environmental Protection | Oppein Home vs. Shenzhen MYS Environmental |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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