Correlation Between Hefei Metalforming and Heilongjiang Publishing
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By analyzing existing cross correlation between Hefei Metalforming Mach and Heilongjiang Publishing Media, you can compare the effects of market volatilities on Hefei Metalforming and Heilongjiang Publishing 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 Heilongjiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hefei Metalforming and Heilongjiang Publishing.
Diversification Opportunities for Hefei Metalforming and Heilongjiang Publishing
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hefei and Heilongjiang is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Hefei Metalforming Mach and Heilongjiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Publishing 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 Heilongjiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Publishing has no effect on the direction of Hefei Metalforming i.e., Hefei Metalforming and Heilongjiang Publishing go up and down completely randomly.
Pair Corralation between Hefei Metalforming and Heilongjiang Publishing
Assuming the 90 days trading horizon Hefei Metalforming Mach is expected to generate 0.99 times more return on investment than Heilongjiang Publishing. However, Hefei Metalforming Mach is 1.01 times less risky than Heilongjiang Publishing. It trades about -0.28 of its potential returns per unit of risk. Heilongjiang Publishing Media is currently generating about -0.34 per unit of risk. If you would invest 842.00 in Hefei Metalforming Mach on October 12, 2024 and sell it today you would lose (155.00) from holding Hefei Metalforming Mach or give up 18.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hefei Metalforming Mach vs. Heilongjiang Publishing Media
Performance |
| Timeline |
| Hefei Metalforming Mach |
| Heilongjiang Publishing |
Hefei Metalforming and Heilongjiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hefei Metalforming and Heilongjiang Publishing
The main advantage of trading using opposite Hefei Metalforming and Heilongjiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hefei Metalforming position performs unexpectedly, Heilongjiang Publishing 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 Heilongjiang Publishing will offset losses from the drop in Heilongjiang Publishing's long position.| Hefei Metalforming vs. Ligao Foods CoLtd | Hefei Metalforming vs. Shantou Wanshun Package | Hefei Metalforming vs. Longmaster Information Tech | Hefei Metalforming vs. Dawning Information Industry |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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