Correlation Between Hefei Metalforming and Dongxing Sec
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By analyzing existing cross correlation between Hefei Metalforming Mach and Dongxing Sec Co, you can compare the effects of market volatilities on Hefei Metalforming and Dongxing Sec 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 Dongxing Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hefei Metalforming and Dongxing Sec.
Diversification Opportunities for Hefei Metalforming and Dongxing Sec
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hefei and Dongxing is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Hefei Metalforming Mach and Dongxing Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongxing Sec 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 Dongxing Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongxing Sec has no effect on the direction of Hefei Metalforming i.e., Hefei Metalforming and Dongxing Sec go up and down completely randomly.
Pair Corralation between Hefei Metalforming and Dongxing Sec
Assuming the 90 days trading horizon Hefei Metalforming is expected to generate 1.24 times less return on investment than Dongxing Sec. But when comparing it to its historical volatility, Hefei Metalforming Mach is 1.0 times less risky than Dongxing Sec. It trades about 0.08 of its potential returns per unit of risk. Dongxing Sec Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 839.00 in Dongxing Sec Co on September 19, 2024 and sell it today you would earn a total of 295.00 from holding Dongxing Sec Co or generate 35.16% 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. Dongxing Sec Co
Performance |
| Timeline |
| Hefei Metalforming Mach |
| Dongxing Sec |
Hefei Metalforming and Dongxing Sec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hefei Metalforming and Dongxing Sec
The main advantage of trading using opposite Hefei Metalforming and Dongxing Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hefei Metalforming position performs unexpectedly, Dongxing Sec 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 Dongxing Sec will offset losses from the drop in Dongxing Sec's long position.| Hefei Metalforming vs. Sichuan Yahua Industrial | Hefei Metalforming vs. Jiangxi Selon Industrial | Hefei Metalforming vs. Ye Chiu Metal | Hefei Metalforming vs. Sunwave Communications Co |
| Dongxing Sec vs. Shantou Wanshun Package | Dongxing Sec vs. Jiahe Foods Industry | Dongxing Sec vs. Shenyang Huitian Thermal | Dongxing Sec 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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