Correlation Between Gem Year and Oppein Home
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By analyzing existing cross correlation between Gem Year Industrial Co and Oppein Home Group, you can compare the effects of market volatilities on Gem Year and Oppein 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 Gem Year with a short position of Oppein Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gem Year and Oppein Home.
Diversification Opportunities for Gem Year and Oppein Home
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gem and Oppein is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Gem Year Industrial Co and Oppein Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppein Home Group and Gem Year 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 Gem Year Industrial Co are associated (or correlated) with Oppein Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppein Home Group has no effect on the direction of Gem Year i.e., Gem Year and Oppein Home go up and down completely randomly.
Pair Corralation between Gem Year and Oppein Home
Assuming the 90 days trading horizon Gem Year Industrial Co is expected to under-perform the Oppein Home. But the stock apears to be less risky and, when comparing its historical volatility, Gem Year Industrial Co is 1.04 times less risky than Oppein Home. The stock trades about -0.27 of its potential returns per unit of risk. The Oppein Home Group is currently generating about -0.2 of returns per unit of risk over similar time horizon. If you would invest 7,465 in Oppein Home Group on October 11, 2024 and sell it today you would lose (747.00) from holding Oppein Home Group or give up 10.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gem Year Industrial Co vs. Oppein Home Group
Performance |
| Timeline |
| Gem Year Industrial |
| Oppein Home Group |
Gem Year and Oppein Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gem Year and Oppein Home
The main advantage of trading using opposite Gem Year and Oppein Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gem Year position performs unexpectedly, Oppein 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 Oppein Home will offset losses from the drop in Oppein Home's long position.| Gem Year vs. Bloomage Biotechnology Corp | Gem Year vs. Sichuan Hebang Biotechnology | Gem Year vs. Dezhan HealthCare Co | Gem Year vs. Shanghai Rongtai Health |
| Oppein Home vs. Gem Year Industrial Co | Oppein Home vs. Dongguan Tarry Electronics | Oppein Home vs. Leyard Optoelectronic | Oppein Home 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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