Correlation Between Weihai Honglin and Sinosteel Engineering
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By analyzing existing cross correlation between Weihai Honglin Electronic and Sinosteel Engineering and, you can compare the effects of market volatilities on Weihai Honglin and Sinosteel Engineering 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 Weihai Honglin with a short position of Sinosteel Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weihai Honglin and Sinosteel Engineering.
Diversification Opportunities for Weihai Honglin and Sinosteel Engineering
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Weihai and Sinosteel is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Weihai Honglin Electronic and Sinosteel Engineering and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinosteel Engineering and and Weihai Honglin 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 Weihai Honglin Electronic are associated (or correlated) with Sinosteel Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinosteel Engineering and has no effect on the direction of Weihai Honglin i.e., Weihai Honglin and Sinosteel Engineering go up and down completely randomly.
Pair Corralation between Weihai Honglin and Sinosteel Engineering
Assuming the 90 days trading horizon Weihai Honglin Electronic is expected to under-perform the Sinosteel Engineering. In addition to that, Weihai Honglin is 1.07 times more volatile than Sinosteel Engineering and. It trades about -0.03 of its total potential returns per unit of risk. Sinosteel Engineering and is currently generating about 0.03 per unit of volatility. If you would invest 580.00 in Sinosteel Engineering and on September 2, 2024 and sell it today you would earn a total of 130.00 from holding Sinosteel Engineering and or generate 22.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 86.82% |
| Values | Daily Returns |
Weihai Honglin Electronic vs. Sinosteel Engineering and
Performance |
| Timeline |
| Weihai Honglin Electronic |
| Sinosteel Engineering and |
Weihai Honglin and Sinosteel Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weihai Honglin and Sinosteel Engineering
The main advantage of trading using opposite Weihai Honglin and Sinosteel Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weihai Honglin position performs unexpectedly, Sinosteel Engineering 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 Sinosteel Engineering will offset losses from the drop in Sinosteel Engineering's long position.| Weihai Honglin vs. Cultural Investment Holdings | Weihai Honglin vs. Gome Telecom Equipment | Weihai Honglin vs. Bus Online Co | Weihai Honglin vs. Holitech Technology Co |
| Sinosteel Engineering vs. 159681 | Sinosteel Engineering vs. 159005 | Sinosteel Engineering vs. Loctek Ergonomic Technology | Sinosteel Engineering vs. 516220 |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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