Correlation Between Chinese Universe and Hongrun Construction
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By analyzing existing cross correlation between Chinese Universe Publishing and Hongrun Construction Group, you can compare the effects of market volatilities on Chinese Universe and Hongrun Construction 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 Chinese Universe with a short position of Hongrun Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chinese Universe and Hongrun Construction.
Diversification Opportunities for Chinese Universe and Hongrun Construction
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chinese and Hongrun is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Chinese Universe Publishing and Hongrun Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hongrun Construction and Chinese Universe 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 Chinese Universe Publishing are associated (or correlated) with Hongrun Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hongrun Construction has no effect on the direction of Chinese Universe i.e., Chinese Universe and Hongrun Construction go up and down completely randomly.
Pair Corralation between Chinese Universe and Hongrun Construction
Assuming the 90 days trading horizon Chinese Universe Publishing is expected to under-perform the Hongrun Construction. But the stock apears to be less risky and, when comparing its historical volatility, Chinese Universe Publishing is 1.08 times less risky than Hongrun Construction. The stock trades about -0.04 of its potential returns per unit of risk. The Hongrun Construction Group is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 344.00 in Hongrun Construction Group on October 18, 2024 and sell it today you would earn a total of 167.00 from holding Hongrun Construction Group or generate 48.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chinese Universe Publishing vs. Hongrun Construction Group
Performance |
| Timeline |
| Chinese Universe Pub |
| Hongrun Construction |
Chinese Universe and Hongrun Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chinese Universe and Hongrun Construction
The main advantage of trading using opposite Chinese Universe and Hongrun Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chinese Universe position performs unexpectedly, Hongrun Construction 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 Hongrun Construction will offset losses from the drop in Hongrun Construction's long position.| Chinese Universe vs. Zhangjiagang Freetrade Science | Chinese Universe vs. Fujian Boss Software | Chinese Universe vs. Agricultural Bank of | Chinese Universe vs. Inspur Software 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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