Correlation Between Hefei Metalforming and Vanfund Urban
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By analyzing existing cross correlation between Hefei Metalforming Mach and Vanfund Urban Investment, you can compare the effects of market volatilities on Hefei Metalforming and Vanfund Urban 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 Hefei Metalforming with a short position of Vanfund Urban. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hefei Metalforming and Vanfund Urban.
Diversification Opportunities for Hefei Metalforming and Vanfund Urban
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hefei and Vanfund is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Hefei Metalforming Mach and Vanfund Urban Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanfund Urban Investment and Hefei Metalforming 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 Hefei Metalforming Mach are associated (or correlated) with Vanfund Urban. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanfund Urban Investment has no effect on the direction of Hefei Metalforming i.e., Hefei Metalforming and Vanfund Urban go up and down completely randomly.
Pair Corralation between Hefei Metalforming and Vanfund Urban
Assuming the 90 days trading horizon Hefei Metalforming Mach is expected to generate 0.99 times more return on investment than Vanfund Urban. However, Hefei Metalforming Mach is 1.01 times less risky than Vanfund Urban. It trades about 0.11 of its potential returns per unit of risk. Vanfund Urban Investment is currently generating about 0.1 per unit of risk. If you would invest 535.00 in Hefei Metalforming Mach on October 18, 2024 and sell it today you would earn a total of 176.00 from holding Hefei Metalforming Mach or generate 32.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hefei Metalforming Mach vs. Vanfund Urban Investment
Performance |
| Timeline |
| Hefei Metalforming Mach |
| Vanfund Urban Investment |
Hefei Metalforming and Vanfund Urban Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hefei Metalforming and Vanfund Urban
The main advantage of trading using opposite Hefei Metalforming and Vanfund Urban positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hefei Metalforming position performs unexpectedly, Vanfund Urban 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 Vanfund Urban will offset losses from the drop in Vanfund Urban's long position.| Hefei Metalforming vs. Biwin Storage Technology | Hefei Metalforming vs. PetroChina Co Ltd | Hefei Metalforming vs. Industrial and Commercial | Hefei Metalforming vs. China Construction Bank |
| Vanfund Urban vs. Shanghai Yanpu Metal | Vanfund Urban vs. Hefei Metalforming Mach | Vanfund Urban vs. Guangzhou Seagull Kitchen | Vanfund Urban vs. Chengdu Spaceon Electronics |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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