Correlation Between HUAQIN TECHNOLOGY and China World
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUAQIN TECHNOLOGY LTD and China World Trade, you can compare the effects of market volatilities on HUAQIN TECHNOLOGY and China World 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 HUAQIN TECHNOLOGY with a short position of China World. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUAQIN TECHNOLOGY and China World.
Diversification Opportunities for HUAQIN TECHNOLOGY and China World
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HUAQIN and China is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding HUAQIN TECHNOLOGY LTD and China World Trade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China World Trade and HUAQIN TECHNOLOGY 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 HUAQIN TECHNOLOGY LTD are associated (or correlated) with China World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China World Trade has no effect on the direction of HUAQIN TECHNOLOGY i.e., HUAQIN TECHNOLOGY and China World go up and down completely randomly.
Pair Corralation between HUAQIN TECHNOLOGY and China World
Assuming the 90 days trading horizon HUAQIN TECHNOLOGY LTD is expected to generate 1.66 times more return on investment than China World. However, HUAQIN TECHNOLOGY is 1.66 times more volatile than China World Trade. It trades about 0.04 of its potential returns per unit of risk. China World Trade is currently generating about 0.05 per unit of risk. If you would invest 5,128 in HUAQIN TECHNOLOGY LTD on October 15, 2024 and sell it today you would earn a total of 1,759 from holding HUAQIN TECHNOLOGY LTD or generate 34.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 72.8% |
| Values | Daily Returns |
HUAQIN TECHNOLOGY LTD vs. China World Trade
Performance |
| Timeline |
| HUAQIN TECHNOLOGY LTD |
| China World Trade |
HUAQIN TECHNOLOGY and China World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUAQIN TECHNOLOGY and China World
The main advantage of trading using opposite HUAQIN TECHNOLOGY and China World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUAQIN TECHNOLOGY position performs unexpectedly, China World 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 China World will offset losses from the drop in China World's long position.| HUAQIN TECHNOLOGY vs. GRG Banking Equipment | HUAQIN TECHNOLOGY vs. Kuang Chi Technologies | HUAQIN TECHNOLOGY vs. Qilu Bank Co | HUAQIN TECHNOLOGY vs. Sharetronic Data Technology |
| China World vs. Qilu Bank Co | China World vs. Financial Street Holdings | China World vs. Harvest Fund Management | China World vs. Huaxia Fund Management |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |