Correlation Between Longjian Road and By Health
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By analyzing existing cross correlation between Longjian Road Bridge and By health, you can compare the effects of market volatilities on Longjian Road and By Health 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 Longjian Road with a short position of By Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longjian Road and By Health.
Diversification Opportunities for Longjian Road and By Health
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Longjian and 300146 is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Longjian Road Bridge and By health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on By health and Longjian Road 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 Longjian Road Bridge are associated (or correlated) with By Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of By health has no effect on the direction of Longjian Road i.e., Longjian Road and By Health go up and down completely randomly.
Pair Corralation between Longjian Road and By Health
Assuming the 90 days trading horizon Longjian Road Bridge is expected to generate 0.97 times more return on investment than By Health. However, Longjian Road Bridge is 1.03 times less risky than By Health. It trades about 0.07 of its potential returns per unit of risk. By health is currently generating about -0.03 per unit of risk. If you would invest 310.00 in Longjian Road Bridge on November 3, 2024 and sell it today you would earn a total of 61.00 from holding Longjian Road Bridge or generate 19.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Longjian Road Bridge vs. By health
Performance |
| Timeline |
| Longjian Road Bridge |
| By health |
Longjian Road and By Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Longjian Road and By Health
The main advantage of trading using opposite Longjian Road and By Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longjian Road position performs unexpectedly, By Health 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 By Health will offset losses from the drop in By Health's long position.| Longjian Road vs. Caihong Display Devices | Longjian Road vs. Guangdong Jingyi Metal | Longjian Road vs. Shandong Hongchuang Aluminum | Longjian Road vs. Tibet Huayu Mining |
| By Health vs. FSPG Hi Tech Co | By Health vs. HengFeng Information Technology | By Health vs. Tongyu Communication | By Health vs. Soyea Technology 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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