Correlation Between Liuzhou Chemical and Huaxia Eye
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By analyzing existing cross correlation between Liuzhou Chemical Industry and Huaxia Eye Hospital, you can compare the effects of market volatilities on Liuzhou Chemical and Huaxia Eye 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 Liuzhou Chemical with a short position of Huaxia Eye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liuzhou Chemical and Huaxia Eye.
Diversification Opportunities for Liuzhou Chemical and Huaxia Eye
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Liuzhou and Huaxia is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Liuzhou Chemical Industry and Huaxia Eye Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaxia Eye Hospital and Liuzhou Chemical 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 Liuzhou Chemical Industry are associated (or correlated) with Huaxia Eye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaxia Eye Hospital has no effect on the direction of Liuzhou Chemical i.e., Liuzhou Chemical and Huaxia Eye go up and down completely randomly.
Pair Corralation between Liuzhou Chemical and Huaxia Eye
Assuming the 90 days trading horizon Liuzhou Chemical Industry is expected to generate 1.36 times more return on investment than Huaxia Eye. However, Liuzhou Chemical is 1.36 times more volatile than Huaxia Eye Hospital. It trades about -0.03 of its potential returns per unit of risk. Huaxia Eye Hospital is currently generating about -0.11 per unit of risk. If you would invest 301.00 in Liuzhou Chemical Industry on September 28, 2024 and sell it today you would lose (8.00) from holding Liuzhou Chemical Industry or give up 2.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Liuzhou Chemical Industry vs. Huaxia Eye Hospital
Performance |
| Timeline |
| Liuzhou Chemical Industry |
| Huaxia Eye Hospital |
Liuzhou Chemical and Huaxia Eye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liuzhou Chemical and Huaxia Eye
The main advantage of trading using opposite Liuzhou Chemical and Huaxia Eye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liuzhou Chemical position performs unexpectedly, Huaxia Eye 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 Huaxia Eye will offset losses from the drop in Huaxia Eye's long position.| Liuzhou Chemical vs. Zijin Mining Group | Liuzhou Chemical vs. Wanhua Chemical Group | Liuzhou Chemical vs. Baoshan Iron Steel | Liuzhou Chemical vs. Shandong Gold Mining |
| Huaxia Eye vs. Liuzhou Chemical Industry | Huaxia Eye vs. North Huajin Chemical | Huaxia Eye vs. Liaoning Dingjide Petrochemical | Huaxia Eye vs. Guangzhou Jointas Chemical |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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