Correlation Between Grandblue Environment and Weihai Honglin
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By analyzing existing cross correlation between Grandblue Environment Co and Weihai Honglin Electronic, you can compare the effects of market volatilities on Grandblue Environment and Weihai Honglin 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 Grandblue Environment with a short position of Weihai Honglin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grandblue Environment and Weihai Honglin.
Diversification Opportunities for Grandblue Environment and Weihai Honglin
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Grandblue and Weihai is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Grandblue Environment Co and Weihai Honglin Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weihai Honglin Electronic and Grandblue Environment 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 Grandblue Environment Co are associated (or correlated) with Weihai Honglin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weihai Honglin Electronic has no effect on the direction of Grandblue Environment i.e., Grandblue Environment and Weihai Honglin go up and down completely randomly.
Pair Corralation between Grandblue Environment and Weihai Honglin
Assuming the 90 days trading horizon Grandblue Environment is expected to generate 9.76 times less return on investment than Weihai Honglin. But when comparing it to its historical volatility, Grandblue Environment Co is 1.85 times less risky than Weihai Honglin. It trades about 0.02 of its potential returns per unit of risk. Weihai Honglin Electronic is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,176 in Weihai Honglin Electronic on October 25, 2024 and sell it today you would earn a total of 579.00 from holding Weihai Honglin Electronic or generate 49.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grandblue Environment Co vs. Weihai Honglin Electronic
Performance |
| Timeline |
| Grandblue Environment |
| Weihai Honglin Electronic |
Grandblue Environment and Weihai Honglin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grandblue Environment and Weihai Honglin
The main advantage of trading using opposite Grandblue Environment and Weihai Honglin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grandblue Environment position performs unexpectedly, Weihai Honglin 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 Weihai Honglin will offset losses from the drop in Weihai Honglin's long position.| Grandblue Environment vs. Gansu Jiu Steel | Grandblue Environment vs. Ming Yang Smart | Grandblue Environment vs. Aba Chemicals Corp | Grandblue Environment vs. Loctek Ergonomic Technology |
| Weihai Honglin vs. Kweichow Moutai Co | Weihai Honglin vs. Contemporary Amperex Technology | Weihai Honglin vs. Beijing Roborock Technology | Weihai Honglin vs. BYD 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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