Correlation Between Weihai Honglin and Integrated Electronic
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By analyzing existing cross correlation between Weihai Honglin Electronic and Integrated Electronic Systems, you can compare the effects of market volatilities on Weihai Honglin and Integrated Electronic 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 Integrated Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weihai Honglin and Integrated Electronic.
Diversification Opportunities for Weihai Honglin and Integrated Electronic
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Weihai and Integrated is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Weihai Honglin Electronic and Integrated Electronic Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Electronic 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 Integrated Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Electronic has no effect on the direction of Weihai Honglin i.e., Weihai Honglin and Integrated Electronic go up and down completely randomly.
Pair Corralation between Weihai Honglin and Integrated Electronic
Assuming the 90 days trading horizon Weihai Honglin is expected to generate 1.81 times less return on investment than Integrated Electronic. But when comparing it to its historical volatility, Weihai Honglin Electronic is 1.17 times less risky than Integrated Electronic. It trades about 0.02 of its potential returns per unit of risk. Integrated Electronic Systems is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 710.00 in Integrated Electronic Systems on September 12, 2024 and sell it today you would earn a total of 41.00 from holding Integrated Electronic Systems or generate 5.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weihai Honglin Electronic vs. Integrated Electronic Systems
Performance |
| Timeline |
| Weihai Honglin Electronic |
| Integrated Electronic |
Weihai Honglin and Integrated Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weihai Honglin and Integrated Electronic
The main advantage of trading using opposite Weihai Honglin and Integrated Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weihai Honglin position performs unexpectedly, Integrated Electronic 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 Integrated Electronic will offset losses from the drop in Integrated Electronic's long position.| Weihai Honglin vs. Agricultural Bank of | Weihai Honglin vs. Industrial and Commercial | Weihai Honglin vs. Bank of China | Weihai Honglin vs. PetroChina Co Ltd |
| Integrated Electronic vs. Agricultural Bank of | Integrated Electronic vs. Industrial and Commercial | Integrated Electronic vs. Bank of China | Integrated Electronic vs. PetroChina Co Ltd |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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