Correlation Between Hengli Petrochemical and Invengo Information
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By analyzing existing cross correlation between Hengli Petrochemical Co and Invengo Information Technology, you can compare the effects of market volatilities on Hengli Petrochemical and Invengo Information 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 Hengli Petrochemical with a short position of Invengo Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Petrochemical and Invengo Information.
Diversification Opportunities for Hengli Petrochemical and Invengo Information
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hengli and Invengo is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Petrochemical Co and Invengo Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invengo Information and Hengli Petrochemical 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 Hengli Petrochemical Co are associated (or correlated) with Invengo Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invengo Information has no effect on the direction of Hengli Petrochemical i.e., Hengli Petrochemical and Invengo Information go up and down completely randomly.
Pair Corralation between Hengli Petrochemical and Invengo Information
Assuming the 90 days trading horizon Hengli Petrochemical is expected to generate 1.28 times less return on investment than Invengo Information. But when comparing it to its historical volatility, Hengli Petrochemical Co is 1.97 times less risky than Invengo Information. It trades about 0.06 of its potential returns per unit of risk. Invengo Information Technology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 459.00 in Invengo Information Technology on October 18, 2024 and sell it today you would earn a total of 86.00 from holding Invengo Information Technology or generate 18.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengli Petrochemical Co vs. Invengo Information Technology
Performance |
| Timeline |
| Hengli Petrochemical |
| Invengo Information |
Hengli Petrochemical and Invengo Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengli Petrochemical and Invengo Information
The main advantage of trading using opposite Hengli Petrochemical and Invengo Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Petrochemical position performs unexpectedly, Invengo Information 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 Invengo Information will offset losses from the drop in Invengo Information's long position.| Hengli Petrochemical vs. Lander Sports Development | Hengli Petrochemical vs. Quectel Wireless Solutions | Hengli Petrochemical vs. Hengdian Entertainment Co | Hengli Petrochemical vs. Tongyu Communication |
| Invengo Information vs. Agricultural Bank of | Invengo Information vs. Dongguan Tarry Electronics | Invengo Information vs. HeNan Splendor Science | Invengo Information vs. Hua Xia Bank |
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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