Correlation Between Vats Liquor and Hygon Information
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By analyzing existing cross correlation between Vats Liquor Chain and Hygon Information Technology, you can compare the effects of market volatilities on Vats Liquor and Hygon Information 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 Vats Liquor with a short position of Hygon Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vats Liquor and Hygon Information.
Diversification Opportunities for Vats Liquor and Hygon Information
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vats and Hygon is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Vats Liquor Chain and Hygon Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hygon Information and Vats Liquor 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 Vats Liquor Chain are associated (or correlated) with Hygon Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hygon Information has no effect on the direction of Vats Liquor i.e., Vats Liquor and Hygon Information go up and down completely randomly.
Pair Corralation between Vats Liquor and Hygon Information
Assuming the 90 days trading horizon Vats Liquor Chain is expected to under-perform the Hygon Information. But the stock apears to be less risky and, when comparing its historical volatility, Vats Liquor Chain is 1.29 times less risky than Hygon Information. The stock trades about -0.03 of its potential returns per unit of risk. The Hygon Information Technology is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 4,411 in Hygon Information Technology on October 12, 2024 and sell it today you would earn a total of 10,409 from holding Hygon Information Technology or generate 235.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vats Liquor Chain vs. Hygon Information Technology
Performance |
| Timeline |
| Vats Liquor Chain |
| Hygon Information |
Vats Liquor and Hygon Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vats Liquor and Hygon Information
The main advantage of trading using opposite Vats Liquor and Hygon Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vats Liquor position performs unexpectedly, Hygon Information 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 Hygon Information will offset losses from the drop in Hygon Information's long position.| Vats Liquor vs. Strait Innovation Internet | Vats Liquor vs. Suzhou Mingzhi Technology | Vats Liquor vs. Zhonghong Pulin Medical | Vats Liquor vs. Shanghai Shibei Hi Tech |
| Hygon Information vs. Changjiang Publishing Media | Hygon Information vs. Guangdong Jinma Entertainment | Hygon Information vs. Ingenic Semiconductor | Hygon Information vs. Anhui Xinhua Media |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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