Correlation Between Hefei Metalforming and Senci Electric
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By analyzing existing cross correlation between Hefei Metalforming Mach and Senci Electric Machinery, you can compare the effects of market volatilities on Hefei Metalforming and Senci Electric 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 Senci Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hefei Metalforming and Senci Electric.
Diversification Opportunities for Hefei Metalforming and Senci Electric
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hefei and Senci is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Hefei Metalforming Mach and Senci Electric Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senci Electric Machinery 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 Senci Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senci Electric Machinery has no effect on the direction of Hefei Metalforming i.e., Hefei Metalforming and Senci Electric go up and down completely randomly.
Pair Corralation between Hefei Metalforming and Senci Electric
Assuming the 90 days trading horizon Hefei Metalforming Mach is expected to generate 1.8 times more return on investment than Senci Electric. However, Hefei Metalforming is 1.8 times more volatile than Senci Electric Machinery. It trades about 0.13 of its potential returns per unit of risk. Senci Electric Machinery is currently generating about 0.06 per unit of risk. If you would invest 761.00 in Hefei Metalforming Mach on September 13, 2024 and sell it today you would earn a total of 70.00 from holding Hefei Metalforming Mach or generate 9.2% 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. Senci Electric Machinery
Performance |
| Timeline |
| Hefei Metalforming Mach |
| Senci Electric Machinery |
Hefei Metalforming and Senci Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hefei Metalforming and Senci Electric
The main advantage of trading using opposite Hefei Metalforming and Senci Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hefei Metalforming position performs unexpectedly, Senci Electric 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 Senci Electric will offset losses from the drop in Senci Electric'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 |
| Senci Electric vs. Industrial and Commercial | Senci Electric vs. China Construction Bank | Senci Electric vs. Agricultural Bank of | Senci Electric vs. Bank of China |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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