Correlation Between Hualan Group and Sharetronic Data
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By analyzing existing cross correlation between Hualan Group Co and Sharetronic Data Technology, you can compare the effects of market volatilities on Hualan Group and Sharetronic Data 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 Hualan Group with a short position of Sharetronic Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hualan Group and Sharetronic Data.
Diversification Opportunities for Hualan Group and Sharetronic Data
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hualan and Sharetronic is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Hualan Group Co and Sharetronic Data Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sharetronic Data Tec and Hualan Group 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 Hualan Group Co are associated (or correlated) with Sharetronic Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sharetronic Data Tec has no effect on the direction of Hualan Group i.e., Hualan Group and Sharetronic Data go up and down completely randomly.
Pair Corralation between Hualan Group and Sharetronic Data
Assuming the 90 days trading horizon Hualan Group Co is expected to generate 0.8 times more return on investment than Sharetronic Data. However, Hualan Group Co is 1.25 times less risky than Sharetronic Data. It trades about 0.12 of its potential returns per unit of risk. Sharetronic Data Technology is currently generating about -0.02 per unit of risk. If you would invest 1,499 in Hualan Group Co on October 24, 2024 and sell it today you would earn a total of 111.00 from holding Hualan Group Co or generate 7.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hualan Group Co vs. Sharetronic Data Technology
Performance |
| Timeline |
| Hualan Group |
| Sharetronic Data Tec |
Hualan Group and Sharetronic Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hualan Group and Sharetronic Data
The main advantage of trading using opposite Hualan Group and Sharetronic Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hualan Group position performs unexpectedly, Sharetronic Data 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 Sharetronic Data will offset losses from the drop in Sharetronic Data's long position.| Hualan Group vs. Silkroad Visual Technology | Hualan Group vs. Guangzhou KingTeller Technology | Hualan Group vs. Xinjiang Beixin RoadBridge | Hualan Group vs. Tianshui Huatian Technology |
| Sharetronic Data vs. Silkroad Visual Technology | Sharetronic Data vs. Longjian Road Bridge | Sharetronic Data vs. Shenzhen Bioeasy Biotechnology | Sharetronic Data vs. Anhui Transport Consulting |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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