Correlation Between Weihai Honglin and GRIPM Advanced
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By analyzing existing cross correlation between Weihai Honglin Electronic and GRIPM Advanced Materials, you can compare the effects of market volatilities on Weihai Honglin and GRIPM Advanced 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 GRIPM Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weihai Honglin and GRIPM Advanced.
Diversification Opportunities for Weihai Honglin and GRIPM Advanced
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Weihai and GRIPM is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Weihai Honglin Electronic and GRIPM Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIPM Advanced Materials 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 GRIPM Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRIPM Advanced Materials has no effect on the direction of Weihai Honglin i.e., Weihai Honglin and GRIPM Advanced go up and down completely randomly.
Pair Corralation between Weihai Honglin and GRIPM Advanced
Assuming the 90 days trading horizon Weihai Honglin Electronic is expected to generate 1.37 times more return on investment than GRIPM Advanced. However, Weihai Honglin is 1.37 times more volatile than GRIPM Advanced Materials. It trades about 0.08 of its potential returns per unit of risk. GRIPM Advanced Materials is currently generating about -0.13 per unit of risk. If you would invest 1,415 in Weihai Honglin Electronic on October 13, 2024 and sell it today you would earn a total of 69.00 from holding Weihai Honglin Electronic or generate 4.88% 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. GRIPM Advanced Materials
Performance |
| Timeline |
| Weihai Honglin Electronic |
| GRIPM Advanced Materials |
Weihai Honglin and GRIPM Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weihai Honglin and GRIPM Advanced
The main advantage of trading using opposite Weihai Honglin and GRIPM Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weihai Honglin position performs unexpectedly, GRIPM Advanced 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 GRIPM Advanced will offset losses from the drop in GRIPM Advanced's long position.| Weihai Honglin vs. Guangdong Xiongsu Technology | Weihai Honglin vs. Anhui Huaren Health | Weihai Honglin vs. Guangzhou KingTeller Technology | Weihai Honglin vs. Sinofibers Technology Co |
| GRIPM Advanced vs. Semiconductor Manufacturing Electronics | GRIPM Advanced vs. Easyhome New Retail | GRIPM Advanced vs. Gansu Huangtai Wine marketing | GRIPM Advanced vs. Weihai Honglin Electronic |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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