Correlation Between HMTNew Technical and Jiujiang Shanshui
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By analyzing existing cross correlation between HMTNew Technical and Jiujiang Shanshui Technology, you can compare the effects of market volatilities on HMTNew Technical and Jiujiang Shanshui 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 HMTNew Technical with a short position of Jiujiang Shanshui. Check out your portfolio center. Please also check ongoing floating volatility patterns of HMTNew Technical and Jiujiang Shanshui.
Diversification Opportunities for HMTNew Technical and Jiujiang Shanshui
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HMTNew and Jiujiang is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding HMTNew Technical and Jiujiang Shanshui Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiujiang Shanshui and HMTNew Technical 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 HMTNew Technical are associated (or correlated) with Jiujiang Shanshui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiujiang Shanshui has no effect on the direction of HMTNew Technical i.e., HMTNew Technical and Jiujiang Shanshui go up and down completely randomly.
Pair Corralation between HMTNew Technical and Jiujiang Shanshui
Assuming the 90 days trading horizon HMTNew Technical is expected to generate 1.4 times more return on investment than Jiujiang Shanshui. However, HMTNew Technical is 1.4 times more volatile than Jiujiang Shanshui Technology. It trades about 0.02 of its potential returns per unit of risk. Jiujiang Shanshui Technology is currently generating about 0.0 per unit of risk. If you would invest 2,876 in HMTNew Technical on September 12, 2024 and sell it today you would earn a total of 169.00 from holding HMTNew Technical or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HMTNew Technical vs. Jiujiang Shanshui Technology
Performance |
| Timeline |
| HMTNew Technical |
| Jiujiang Shanshui |
HMTNew Technical and Jiujiang Shanshui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HMTNew Technical and Jiujiang Shanshui
The main advantage of trading using opposite HMTNew Technical and Jiujiang Shanshui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HMTNew Technical position performs unexpectedly, Jiujiang Shanshui 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 Jiujiang Shanshui will offset losses from the drop in Jiujiang Shanshui's long position.| HMTNew Technical vs. Guangxi Wuzhou Communications | HMTNew Technical vs. Lander Sports Development | HMTNew Technical vs. Jinhui Liquor Co | HMTNew Technical vs. Guangdong Shenglu Telecommunication |
| Jiujiang Shanshui vs. Guangzhou Ruoyuchen Information | Jiujiang Shanshui vs. ButOne Information Corp | Jiujiang Shanshui vs. Zhuhai Comleader Information | Jiujiang Shanshui vs. Yangmei Chemical 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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