Correlation Between AUPU Home and Hangzhou Weiguang
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By analyzing existing cross correlation between AUPU Home Style and Hangzhou Weiguang Electronic, you can compare the effects of market volatilities on AUPU Home and Hangzhou Weiguang 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 AUPU Home with a short position of Hangzhou Weiguang. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUPU Home and Hangzhou Weiguang.
Diversification Opportunities for AUPU Home and Hangzhou Weiguang
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AUPU and Hangzhou is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding AUPU Home Style and Hangzhou Weiguang Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Weiguang and AUPU Home 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 AUPU Home Style are associated (or correlated) with Hangzhou Weiguang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Weiguang has no effect on the direction of AUPU Home i.e., AUPU Home and Hangzhou Weiguang go up and down completely randomly.
Pair Corralation between AUPU Home and Hangzhou Weiguang
Assuming the 90 days trading horizon AUPU Home Style is expected to generate 0.96 times more return on investment than Hangzhou Weiguang. However, AUPU Home Style is 1.04 times less risky than Hangzhou Weiguang. It trades about 0.02 of its potential returns per unit of risk. Hangzhou Weiguang Electronic is currently generating about 0.0 per unit of risk. If you would invest 952.00 in AUPU Home Style on October 9, 2024 and sell it today you would earn a total of 119.00 from holding AUPU Home Style or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AUPU Home Style vs. Hangzhou Weiguang Electronic
Performance |
| Timeline |
| AUPU Home Style |
| Hangzhou Weiguang |
AUPU Home and Hangzhou Weiguang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AUPU Home and Hangzhou Weiguang
The main advantage of trading using opposite AUPU Home and Hangzhou Weiguang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUPU Home position performs unexpectedly, Hangzhou Weiguang 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 Hangzhou Weiguang will offset losses from the drop in Hangzhou Weiguang's long position.| AUPU Home vs. Shandong Longda Meat | AUPU Home vs. Union Semiconductor Co | AUPU Home vs. Yankershop Food Co | AUPU Home vs. Cansino Biologics |
| Hangzhou Weiguang vs. Kweichow Moutai Co | Hangzhou Weiguang vs. Contemporary Amperex Technology | Hangzhou Weiguang vs. G bits Network Technology | Hangzhou Weiguang vs. Beijing Roborock Technology |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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