Correlation Between Hefei Metalforming and Tongding Interconnection
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By analyzing existing cross correlation between Hefei Metalforming Mach and Tongding Interconnection Information, you can compare the effects of market volatilities on Hefei Metalforming and Tongding Interconnection 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 Tongding Interconnection. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hefei Metalforming and Tongding Interconnection.
Diversification Opportunities for Hefei Metalforming and Tongding Interconnection
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hefei and Tongding is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Hefei Metalforming Mach and Tongding Interconnection Infor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongding Interconnection 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 Tongding Interconnection. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongding Interconnection has no effect on the direction of Hefei Metalforming i.e., Hefei Metalforming and Tongding Interconnection go up and down completely randomly.
Pair Corralation between Hefei Metalforming and Tongding Interconnection
Assuming the 90 days trading horizon Hefei Metalforming Mach is expected to generate 1.82 times more return on investment than Tongding Interconnection. However, Hefei Metalforming is 1.82 times more volatile than Tongding Interconnection Information. It trades about 0.1 of its potential returns per unit of risk. Tongding Interconnection Information is currently generating about 0.15 per unit of risk. If you would invest 730.00 in Hefei Metalforming Mach on September 3, 2024 and sell it today you would earn a total of 49.00 from holding Hefei Metalforming Mach or generate 6.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hefei Metalforming Mach vs. Tongding Interconnection Infor
Performance |
| Timeline |
| Hefei Metalforming Mach |
| Tongding Interconnection |
Hefei Metalforming and Tongding Interconnection Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hefei Metalforming and Tongding Interconnection
The main advantage of trading using opposite Hefei Metalforming and Tongding Interconnection positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hefei Metalforming position performs unexpectedly, Tongding Interconnection 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 Tongding Interconnection will offset losses from the drop in Tongding Interconnection's long position.| Hefei Metalforming vs. Cultural Investment Holdings | Hefei Metalforming vs. Gome Telecom Equipment | Hefei Metalforming vs. Bus Online Co | Hefei Metalforming vs. Holitech Technology Co |
| Tongding Interconnection vs. V V Food | Tongding Interconnection vs. Hainan Airlines Co | Tongding Interconnection vs. HaiXin Foods Co | Tongding Interconnection vs. Beijing Sanyuan Foods |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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