Correlation Between Hefei Metalforming and Shanxi Tond
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By analyzing existing cross correlation between Hefei Metalforming Mach and Shanxi Tond Chemical, you can compare the effects of market volatilities on Hefei Metalforming and Shanxi Tond 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 Shanxi Tond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hefei Metalforming and Shanxi Tond.
Diversification Opportunities for Hefei Metalforming and Shanxi Tond
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hefei and Shanxi is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Hefei Metalforming Mach and Shanxi Tond Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanxi Tond Chemical 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 Shanxi Tond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanxi Tond Chemical has no effect on the direction of Hefei Metalforming i.e., Hefei Metalforming and Shanxi Tond go up and down completely randomly.
Pair Corralation between Hefei Metalforming and Shanxi Tond
Assuming the 90 days trading horizon Hefei Metalforming Mach is expected to generate 1.48 times more return on investment than Shanxi Tond. However, Hefei Metalforming is 1.48 times more volatile than Shanxi Tond Chemical. It trades about 0.04 of its potential returns per unit of risk. Shanxi Tond Chemical is currently generating about 0.0 per unit of risk. If you would invest 638.00 in Hefei Metalforming Mach on October 14, 2024 and sell it today you would earn a total of 28.00 from holding Hefei Metalforming Mach or generate 4.39% 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. Shanxi Tond Chemical
Performance |
| Timeline |
| Hefei Metalforming Mach |
| Shanxi Tond Chemical |
Hefei Metalforming and Shanxi Tond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hefei Metalforming and Shanxi Tond
The main advantage of trading using opposite Hefei Metalforming and Shanxi Tond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hefei Metalforming position performs unexpectedly, Shanxi Tond 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 Shanxi Tond will offset losses from the drop in Shanxi Tond'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 |
| Shanxi Tond vs. Tibet Huayu Mining | Shanxi Tond vs. Hefei Metalforming Mach | Shanxi Tond vs. Beijing HuaYuanYiTong Thermal | Shanxi Tond vs. Xinjiang Baodi Mining |
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 Stocks Directory module to find actively traded stocks across global markets.
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