Correlation Between Caihong Display and HanS Laser
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By analyzing existing cross correlation between Caihong Display Devices and HanS Laser Tech, you can compare the effects of market volatilities on Caihong Display and HanS Laser 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 Caihong Display with a short position of HanS Laser. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caihong Display and HanS Laser.
Diversification Opportunities for Caihong Display and HanS Laser
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Caihong and HanS is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Caihong Display Devices and HanS Laser Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HanS Laser Tech and Caihong Display 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 Caihong Display Devices are associated (or correlated) with HanS Laser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HanS Laser Tech has no effect on the direction of Caihong Display i.e., Caihong Display and HanS Laser go up and down completely randomly.
Pair Corralation between Caihong Display and HanS Laser
Assuming the 90 days trading horizon Caihong Display Devices is expected to generate 1.13 times more return on investment than HanS Laser. However, Caihong Display is 1.13 times more volatile than HanS Laser Tech. It trades about 0.05 of its potential returns per unit of risk. HanS Laser Tech is currently generating about 0.0 per unit of risk. If you would invest 463.00 in Caihong Display Devices on October 16, 2024 and sell it today you would earn a total of 322.00 from holding Caihong Display Devices or generate 69.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caihong Display Devices vs. HanS Laser Tech
Performance |
| Timeline |
| Caihong Display Devices |
| HanS Laser Tech |
Caihong Display and HanS Laser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caihong Display and HanS Laser
The main advantage of trading using opposite Caihong Display and HanS Laser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caihong Display position performs unexpectedly, HanS Laser 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 HanS Laser will offset losses from the drop in HanS Laser's long position.| Caihong Display vs. Great Sun Foods Co | Caihong Display vs. Vanfund Urban Investment | Caihong Display vs. Zhongrun Resources Investment | Caihong Display vs. Kunwu Jiuding Investment |
| HanS Laser vs. Soochow Suzhou Industrial | HanS Laser vs. Hygon Information Technology | HanS Laser vs. Tibet Huayu Mining | HanS Laser vs. Chengtun Mining Group |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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