Correlation Between Hefei Metalforming and HanS Laser
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By analyzing existing cross correlation between Hefei Metalforming Mach and HanS Laser Tech, you can compare the effects of market volatilities on Hefei Metalforming 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 Hefei Metalforming with a short position of HanS Laser. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hefei Metalforming and HanS Laser.
Diversification Opportunities for Hefei Metalforming and HanS Laser
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hefei and HanS is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Hefei Metalforming Mach 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 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 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 Hefei Metalforming i.e., Hefei Metalforming and HanS Laser go up and down completely randomly.
Pair Corralation between Hefei Metalforming and HanS Laser
Assuming the 90 days trading horizon Hefei Metalforming Mach is expected to under-perform the HanS Laser. In addition to that, Hefei Metalforming is 1.66 times more volatile than HanS Laser Tech. It trades about -0.24 of its total potential returns per unit of risk. HanS Laser Tech is currently generating about -0.16 per unit of volatility. If you would invest 2,610 in HanS Laser Tech on October 14, 2024 and sell it today you would lose (174.00) from holding HanS Laser Tech or give up 6.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hefei Metalforming Mach vs. HanS Laser Tech
Performance |
| Timeline |
| Hefei Metalforming Mach |
| HanS Laser Tech |
Hefei Metalforming and HanS Laser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hefei Metalforming and HanS Laser
The main advantage of trading using opposite Hefei Metalforming and HanS Laser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hefei Metalforming 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.| Hefei Metalforming vs. Chengdu Xinzhu RoadBridge | Hefei Metalforming vs. Dazhong Transportation Group | Hefei Metalforming vs. Fangda Special Steel | Hefei Metalforming vs. Penyao Environmental Protection |
| HanS Laser vs. Hainan Mining Co | HanS Laser vs. Hefei Metalforming Mach | HanS Laser vs. China Reform Health | HanS Laser vs. Chongqing Sulian Plastic |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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