Correlation Between Weihai Honglin and Huizhou Speed
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By analyzing existing cross correlation between Weihai Honglin Electronic and Huizhou Speed Wireless, you can compare the effects of market volatilities on Weihai Honglin and Huizhou Speed 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 Huizhou Speed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weihai Honglin and Huizhou Speed.
Diversification Opportunities for Weihai Honglin and Huizhou Speed
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Weihai and Huizhou is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Weihai Honglin Electronic and Huizhou Speed Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huizhou Speed Wireless 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 Huizhou Speed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huizhou Speed Wireless has no effect on the direction of Weihai Honglin i.e., Weihai Honglin and Huizhou Speed go up and down completely randomly.
Pair Corralation between Weihai Honglin and Huizhou Speed
Assuming the 90 days trading horizon Weihai Honglin Electronic is expected to generate 0.94 times more return on investment than Huizhou Speed. However, Weihai Honglin Electronic is 1.06 times less risky than Huizhou Speed. It trades about 0.1 of its potential returns per unit of risk. Huizhou Speed Wireless is currently generating about -0.15 per unit of risk. If you would invest 1,394 in Weihai Honglin Electronic on November 6, 2024 and sell it today you would earn a total of 213.00 from holding Weihai Honglin Electronic or generate 15.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weihai Honglin Electronic vs. Huizhou Speed Wireless
Performance |
| Timeline |
| Weihai Honglin Electronic |
| Huizhou Speed Wireless |
Weihai Honglin and Huizhou Speed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weihai Honglin and Huizhou Speed
The main advantage of trading using opposite Weihai Honglin and Huizhou Speed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weihai Honglin position performs unexpectedly, Huizhou Speed 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 Huizhou Speed will offset losses from the drop in Huizhou Speed's long position.| Weihai Honglin vs. Shanghai Yanpu Metal | Weihai Honglin vs. China Satellite Communications | Weihai Honglin vs. Allwin Telecommunication Co | Weihai Honglin vs. Western Metal Materials |
| Huizhou Speed vs. Shaanxi Energy Investment | Huizhou Speed vs. Beijing Mainstreets Investment | Huizhou Speed vs. Henan Shuanghui Investment | Huizhou Speed vs. Shanghai Material Trading |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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