Correlation Between Hefei Metalforming and 37 Interactive
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By analyzing existing cross correlation between Hefei Metalforming Mach and 37 Interactive Entertainment, you can compare the effects of market volatilities on Hefei Metalforming and 37 Interactive 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 37 Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hefei Metalforming and 37 Interactive.
Diversification Opportunities for Hefei Metalforming and 37 Interactive
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hefei and 002555 is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Hefei Metalforming Mach and 37 Interactive Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 37 Interactive Enter 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 37 Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 37 Interactive Enter has no effect on the direction of Hefei Metalforming i.e., Hefei Metalforming and 37 Interactive go up and down completely randomly.
Pair Corralation between Hefei Metalforming and 37 Interactive
Assuming the 90 days trading horizon Hefei Metalforming Mach is expected to generate 1.08 times more return on investment than 37 Interactive. However, Hefei Metalforming is 1.08 times more volatile than 37 Interactive Entertainment. It trades about 0.16 of its potential returns per unit of risk. 37 Interactive Entertainment is currently generating about 0.12 per unit of risk. If you would invest 561.00 in Hefei Metalforming Mach on August 30, 2024 and sell it today you would earn a total of 209.00 from holding Hefei Metalforming Mach or generate 37.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hefei Metalforming Mach vs. 37 Interactive Entertainment
Performance |
| Timeline |
| Hefei Metalforming Mach |
| 37 Interactive Enter |
Hefei Metalforming and 37 Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hefei Metalforming and 37 Interactive
The main advantage of trading using opposite Hefei Metalforming and 37 Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hefei Metalforming position performs unexpectedly, 37 Interactive 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 37 Interactive will offset losses from the drop in 37 Interactive's long position.| Hefei Metalforming vs. China Publishing Media | Hefei Metalforming vs. Will Semiconductor Co | Hefei Metalforming vs. Guangzhou Jinyi Media | Hefei Metalforming vs. Threes Company Media |
| 37 Interactive vs. Railway Signal Communication | 37 Interactive vs. Tongyu Communication | 37 Interactive vs. Sunwave Communications Co | 37 Interactive vs. Nanjing Putian Telecommunications |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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