Correlation Between HUAQIN TECHNOLOGY and Shanghai Broadband
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By analyzing existing cross correlation between HUAQIN TECHNOLOGY LTD and Shanghai Broadband Technology, you can compare the effects of market volatilities on HUAQIN TECHNOLOGY and Shanghai Broadband 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 Shanghai Broadband. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUAQIN TECHNOLOGY and Shanghai Broadband.
Diversification Opportunities for HUAQIN TECHNOLOGY and Shanghai Broadband
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HUAQIN and Shanghai is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding HUAQIN TECHNOLOGY LTD and Shanghai Broadband Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Broadband 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 Shanghai Broadband. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Broadband has no effect on the direction of HUAQIN TECHNOLOGY i.e., HUAQIN TECHNOLOGY and Shanghai Broadband go up and down completely randomly.
Pair Corralation between HUAQIN TECHNOLOGY and Shanghai Broadband
Assuming the 90 days trading horizon HUAQIN TECHNOLOGY LTD is expected to generate 1.24 times more return on investment than Shanghai Broadband. However, HUAQIN TECHNOLOGY is 1.24 times more volatile than Shanghai Broadband Technology. It trades about -0.02 of its potential returns per unit of risk. Shanghai Broadband Technology is currently generating about -0.15 per unit of risk. If you would invest 7,685 in HUAQIN TECHNOLOGY LTD on October 30, 2024 and sell it today you would lose (234.00) from holding HUAQIN TECHNOLOGY LTD or give up 3.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUAQIN TECHNOLOGY LTD vs. Shanghai Broadband Technology
Performance |
| Timeline |
| HUAQIN TECHNOLOGY LTD |
| Shanghai Broadband |
HUAQIN TECHNOLOGY and Shanghai Broadband Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUAQIN TECHNOLOGY and Shanghai Broadband
The main advantage of trading using opposite HUAQIN TECHNOLOGY and Shanghai Broadband positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUAQIN TECHNOLOGY position performs unexpectedly, Shanghai Broadband 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 Shanghai Broadband will offset losses from the drop in Shanghai Broadband's long position.| HUAQIN TECHNOLOGY vs. Sportsoul Co Ltd | HUAQIN TECHNOLOGY vs. Beijing Mainstreets Investment | HUAQIN TECHNOLOGY vs. Do Fluoride Chemicals Co | HUAQIN TECHNOLOGY vs. Henan Shuanghui Investment |
| Shanghai Broadband vs. Lotus Health Group | Shanghai Broadband vs. Impulse Qingdao Health | Shanghai Broadband vs. Dezhan HealthCare Co | Shanghai Broadband vs. Healthcare 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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