Correlation Between Shandong Homey and AUPU Home
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By analyzing existing cross correlation between Shandong Homey Aquatic and AUPU Home Style, you can compare the effects of market volatilities on Shandong Homey and AUPU Home 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 AUPU Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Homey and AUPU Home.
Diversification Opportunities for Shandong Homey and AUPU Home
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shandong and AUPU is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Homey Aquatic and AUPU Home Style in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AUPU Home Style 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 AUPU Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AUPU Home Style has no effect on the direction of Shandong Homey i.e., Shandong Homey and AUPU Home go up and down completely randomly.
Pair Corralation between Shandong Homey and AUPU Home
Assuming the 90 days trading horizon Shandong Homey is expected to generate 1.54 times less return on investment than AUPU Home. In addition to that, Shandong Homey is 1.04 times more volatile than AUPU Home Style. It trades about 0.02 of its total potential returns per unit of risk. AUPU Home Style is currently generating about 0.04 per unit of volatility. If you would invest 909.00 in AUPU Home Style on September 13, 2024 and sell it today you would earn a total of 281.00 from holding AUPU Home Style or generate 30.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Homey Aquatic vs. AUPU Home Style
Performance |
| Timeline |
| Shandong Homey Aquatic |
| AUPU Home Style |
Shandong Homey and AUPU Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Homey and AUPU Home
The main advantage of trading using opposite Shandong Homey and AUPU Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Homey position performs unexpectedly, AUPU Home 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 AUPU Home will offset losses from the drop in AUPU Home's long position.| Shandong Homey vs. Zhongrun Resources Investment | Shandong Homey vs. Shenzhen Centralcon Investment | Shandong Homey vs. Shaanxi Energy Investment | Shandong Homey vs. Zhongtong Guomai Communication |
| AUPU Home vs. Lutian Machinery Co | AUPU Home vs. China Longyuan Power | AUPU Home vs. PetroChina Co Ltd | AUPU Home vs. Bank of China |
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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