Correlation Between Shandong Homey and Ningbo Homelink
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By analyzing existing cross correlation between Shandong Homey Aquatic and Ningbo Homelink Eco iTech, you can compare the effects of market volatilities on Shandong Homey and Ningbo Homelink 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 Shandong Homey with a short position of Ningbo Homelink. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Homey and Ningbo Homelink.
Diversification Opportunities for Shandong Homey and Ningbo Homelink
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and Ningbo is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Homey Aquatic and Ningbo Homelink Eco iTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Homelink Eco and Shandong Homey 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 Shandong Homey Aquatic are associated (or correlated) with Ningbo Homelink. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Homelink Eco has no effect on the direction of Shandong Homey i.e., Shandong Homey and Ningbo Homelink go up and down completely randomly.
Pair Corralation between Shandong Homey and Ningbo Homelink
Assuming the 90 days trading horizon Shandong Homey Aquatic is expected to generate 0.95 times more return on investment than Ningbo Homelink. However, Shandong Homey Aquatic is 1.06 times less risky than Ningbo Homelink. It trades about 0.0 of its potential returns per unit of risk. Ningbo Homelink Eco iTech is currently generating about -0.01 per unit of risk. If you would invest 259.00 in Shandong Homey Aquatic on October 27, 2024 and sell it today you would lose (39.00) from holding Shandong Homey Aquatic or give up 15.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Homey Aquatic vs. Ningbo Homelink Eco iTech
Performance |
| Timeline |
| Shandong Homey Aquatic |
| Ningbo Homelink Eco |
Shandong Homey and Ningbo Homelink Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Homey and Ningbo Homelink
The main advantage of trading using opposite Shandong Homey and Ningbo Homelink positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Homey position performs unexpectedly, Ningbo Homelink 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 Ningbo Homelink will offset losses from the drop in Ningbo Homelink's long position.| Shandong Homey vs. Zotye Automobile Co | Shandong Homey vs. Ningbo Ligong Online | Shandong Homey vs. Healthcare Co | Shandong Homey vs. China Mobile Limited |
| Ningbo Homelink vs. Nanxing Furniture Machinery | Ningbo Homelink vs. Great Sun Foods Co | Ningbo Homelink vs. Anhui Huilong Agricultural | Ningbo Homelink vs. Linzhou Heavy Machinery |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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