Correlation Between Hefei Metalforming and DR
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By analyzing existing cross correlation between Hefei Metalforming Mach and DR Limited, you can compare the effects of market volatilities on Hefei Metalforming and DR 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 DR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hefei Metalforming and DR.
Diversification Opportunities for Hefei Metalforming and DR
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hefei and DR is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Hefei Metalforming Mach and DR Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DR Limited 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 DR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DR Limited has no effect on the direction of Hefei Metalforming i.e., Hefei Metalforming and DR go up and down completely randomly.
Pair Corralation between Hefei Metalforming and DR
Assuming the 90 days trading horizon Hefei Metalforming Mach is expected to generate 1.12 times more return on investment than DR. However, Hefei Metalforming is 1.12 times more volatile than DR Limited. It trades about 0.02 of its potential returns per unit of risk. DR Limited is currently generating about -0.04 per unit of risk. If you would invest 808.00 in Hefei Metalforming Mach on September 12, 2024 and sell it today you would earn a total of 11.00 from holding Hefei Metalforming Mach or generate 1.36% 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. DR Limited
Performance |
| Timeline |
| Hefei Metalforming Mach |
| DR Limited |
Hefei Metalforming and DR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hefei Metalforming and DR
The main advantage of trading using opposite Hefei Metalforming and DR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hefei Metalforming position performs unexpectedly, DR 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 DR will offset losses from the drop in DR's long position.| Hefei Metalforming vs. Agricultural Bank of | Hefei Metalforming vs. Industrial and Commercial | Hefei Metalforming vs. Bank of China | Hefei Metalforming vs. PetroChina Co Ltd |
| DR vs. Hangzhou Pinming Software | DR vs. Tianshan Aluminum Group | DR vs. Shanghai Yanpu Metal | DR vs. Hefei Metalforming Mach |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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