Correlation Between Hefei Metalforming and Poly Real
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By analyzing existing cross correlation between Hefei Metalforming Mach and Poly Real Estate, you can compare the effects of market volatilities on Hefei Metalforming and Poly Real 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 Poly Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hefei Metalforming and Poly Real.
Diversification Opportunities for Hefei Metalforming and Poly Real
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hefei and Poly is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Hefei Metalforming Mach and Poly Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poly Real Estate 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 Poly Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poly Real Estate has no effect on the direction of Hefei Metalforming i.e., Hefei Metalforming and Poly Real go up and down completely randomly.
Pair Corralation between Hefei Metalforming and Poly Real
Assuming the 90 days trading horizon Hefei Metalforming Mach is expected to generate 1.35 times more return on investment than Poly Real. However, Hefei Metalforming is 1.35 times more volatile than Poly Real Estate. It trades about 0.02 of its potential returns per unit of risk. Poly Real Estate is currently generating about -0.02 per unit of risk. If you would invest 795.00 in Hefei Metalforming Mach on September 13, 2024 and sell it today you would earn a total of 47.00 from holding Hefei Metalforming Mach or generate 5.91% 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. Poly Real Estate
Performance |
| Timeline |
| Hefei Metalforming Mach |
| Poly Real Estate |
Hefei Metalforming and Poly Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hefei Metalforming and Poly Real
The main advantage of trading using opposite Hefei Metalforming and Poly Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hefei Metalforming position performs unexpectedly, Poly Real 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 Poly Real will offset losses from the drop in Poly Real's long position.| Hefei Metalforming vs. Industrial and Commercial | Hefei Metalforming vs. Kweichow Moutai Co | Hefei Metalforming vs. Agricultural Bank of | Hefei Metalforming vs. China Mobile Limited |
| Poly Real vs. Hefei Metalforming Mach | Poly Real vs. Chengtun Mining Group | Poly Real vs. Ningbo Thermal Power | Poly Real vs. MayAir Technology Co |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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