Correlation Between Hefei Metalforming and Chengdu Xinzhu
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By analyzing existing cross correlation between Hefei Metalforming Mach and Chengdu Xinzhu RoadBridge, you can compare the effects of market volatilities on Hefei Metalforming and Chengdu Xinzhu 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 Chengdu Xinzhu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hefei Metalforming and Chengdu Xinzhu.
Diversification Opportunities for Hefei Metalforming and Chengdu Xinzhu
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hefei and Chengdu is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Hefei Metalforming Mach and Chengdu Xinzhu RoadBridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Xinzhu RoadBridge 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 Chengdu Xinzhu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Xinzhu RoadBridge has no effect on the direction of Hefei Metalforming i.e., Hefei Metalforming and Chengdu Xinzhu go up and down completely randomly.
Pair Corralation between Hefei Metalforming and Chengdu Xinzhu
Assuming the 90 days trading horizon Hefei Metalforming Mach is expected to generate 0.81 times more return on investment than Chengdu Xinzhu. However, Hefei Metalforming Mach is 1.23 times less risky than Chengdu Xinzhu. It trades about 0.15 of its potential returns per unit of risk. Chengdu Xinzhu RoadBridge is currently generating about 0.07 per unit of risk. If you would invest 635.00 in Hefei Metalforming Mach on November 6, 2024 and sell it today you would earn a total of 46.00 from holding Hefei Metalforming Mach or generate 7.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hefei Metalforming Mach vs. Chengdu Xinzhu RoadBridge
Performance |
| Timeline |
| Hefei Metalforming Mach |
| Chengdu Xinzhu RoadBridge |
Hefei Metalforming and Chengdu Xinzhu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hefei Metalforming and Chengdu Xinzhu
The main advantage of trading using opposite Hefei Metalforming and Chengdu Xinzhu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hefei Metalforming position performs unexpectedly, Chengdu Xinzhu 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 Chengdu Xinzhu will offset losses from the drop in Chengdu Xinzhu's long position.| Hefei Metalforming vs. Pengxin International Mining | Hefei Metalforming vs. Smartgiant Technology Co | Hefei Metalforming vs. Xinjiang Baodi Mining | Hefei Metalforming vs. Bosera CMSK Industrial |
| Chengdu Xinzhu vs. Ming Yang Smart | Chengdu Xinzhu vs. 159681 | Chengdu Xinzhu vs. 159005 | Chengdu Xinzhu vs. Loctek Ergonomic Technology |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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