Correlation Between Weihai Honglin and Eyebright Medical
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By analyzing existing cross correlation between Weihai Honglin Electronic and Eyebright Medical Technology, you can compare the effects of market volatilities on Weihai Honglin and Eyebright Medical 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 Eyebright Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weihai Honglin and Eyebright Medical.
Diversification Opportunities for Weihai Honglin and Eyebright Medical
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Weihai and Eyebright is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Weihai Honglin Electronic and Eyebright Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eyebright Medical 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 Eyebright Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eyebright Medical has no effect on the direction of Weihai Honglin i.e., Weihai Honglin and Eyebright Medical go up and down completely randomly.
Pair Corralation between Weihai Honglin and Eyebright Medical
Assuming the 90 days trading horizon Weihai Honglin Electronic is expected to generate 1.81 times more return on investment than Eyebright Medical. However, Weihai Honglin is 1.81 times more volatile than Eyebright Medical Technology. It trades about 0.14 of its potential returns per unit of risk. Eyebright Medical Technology is currently generating about 0.06 per unit of risk. If you would invest 1,459 in Weihai Honglin Electronic on November 3, 2024 and sell it today you would earn a total of 148.00 from holding Weihai Honglin Electronic or generate 10.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weihai Honglin Electronic vs. Eyebright Medical Technology
Performance |
| Timeline |
| Weihai Honglin Electronic |
| Eyebright Medical |
Weihai Honglin and Eyebright Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weihai Honglin and Eyebright Medical
The main advantage of trading using opposite Weihai Honglin and Eyebright Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weihai Honglin position performs unexpectedly, Eyebright Medical 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 Eyebright Medical will offset losses from the drop in Eyebright Medical's long position.| Weihai Honglin vs. Winner Medical Co | Weihai Honglin vs. East Money Information | Weihai Honglin vs. Juneyao Airlines | Weihai Honglin vs. Shandong Longquan Pipeline |
| Eyebright Medical vs. HeBei Jinniu Chemical | Eyebright Medical vs. Daoming OpticsChemical Co | Eyebright Medical vs. Xiangpiaopiao Food Co | Eyebright Medical vs. Youyou Foods Co |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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