Correlation Between Hefei Metalforming and Cangzhou Mingzhu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hefei Metalforming Mach and Cangzhou Mingzhu Plastic, you can compare the effects of market volatilities on Hefei Metalforming and Cangzhou Mingzhu 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 Cangzhou Mingzhu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hefei Metalforming and Cangzhou Mingzhu.
Diversification Opportunities for Hefei Metalforming and Cangzhou Mingzhu
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hefei and Cangzhou is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Hefei Metalforming Mach and Cangzhou Mingzhu Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cangzhou Mingzhu Plastic 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 Cangzhou Mingzhu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cangzhou Mingzhu Plastic has no effect on the direction of Hefei Metalforming i.e., Hefei Metalforming and Cangzhou Mingzhu go up and down completely randomly.
Pair Corralation between Hefei Metalforming and Cangzhou Mingzhu
Assuming the 90 days trading horizon Hefei Metalforming Mach is expected to generate 1.99 times more return on investment than Cangzhou Mingzhu. However, Hefei Metalforming is 1.99 times more volatile than Cangzhou Mingzhu Plastic. It trades about -0.19 of its potential returns per unit of risk. Cangzhou Mingzhu Plastic is currently generating about -0.42 per unit of risk. If you would invest 780.00 in Hefei Metalforming Mach on October 16, 2024 and sell it today you would lose (104.00) from holding Hefei Metalforming Mach or give up 13.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hefei Metalforming Mach vs. Cangzhou Mingzhu Plastic
Performance |
| Timeline |
| Hefei Metalforming Mach |
| Cangzhou Mingzhu Plastic |
Hefei Metalforming and Cangzhou Mingzhu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hefei Metalforming and Cangzhou Mingzhu
The main advantage of trading using opposite Hefei Metalforming and Cangzhou Mingzhu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hefei Metalforming position performs unexpectedly, Cangzhou Mingzhu 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 Cangzhou Mingzhu will offset losses from the drop in Cangzhou Mingzhu'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 |
| Cangzhou Mingzhu vs. Everjoy Health Group | Cangzhou Mingzhu vs. Shenzhen Bioeasy Biotechnology | Cangzhou Mingzhu vs. Lotus Health Group | Cangzhou Mingzhu vs. Shandong Sanyuan Biotechnology |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |