Correlation Between Oppein Home and Hunan Fangsheng
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By analyzing existing cross correlation between Oppein Home Group and Hunan Fangsheng Pharm, you can compare the effects of market volatilities on Oppein Home and Hunan Fangsheng 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 Oppein Home with a short position of Hunan Fangsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppein Home and Hunan Fangsheng.
Diversification Opportunities for Oppein Home and Hunan Fangsheng
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oppein and Hunan is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Oppein Home Group and Hunan Fangsheng Pharm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Fangsheng Pharm and Oppein 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 Oppein Home Group are associated (or correlated) with Hunan Fangsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Fangsheng Pharm has no effect on the direction of Oppein Home i.e., Oppein Home and Hunan Fangsheng go up and down completely randomly.
Pair Corralation between Oppein Home and Hunan Fangsheng
Assuming the 90 days trading horizon Oppein Home Group is expected to generate 1.05 times more return on investment than Hunan Fangsheng. However, Oppein Home is 1.05 times more volatile than Hunan Fangsheng Pharm. It trades about -0.09 of its potential returns per unit of risk. Hunan Fangsheng Pharm is currently generating about -0.15 per unit of risk. If you would invest 6,882 in Oppein Home Group on November 3, 2024 and sell it today you would lose (342.00) from holding Oppein Home Group or give up 4.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppein Home Group vs. Hunan Fangsheng Pharm
Performance |
| Timeline |
| Oppein Home Group |
| Hunan Fangsheng Pharm |
Oppein Home and Hunan Fangsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppein Home and Hunan Fangsheng
The main advantage of trading using opposite Oppein Home and Hunan Fangsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppein Home position performs unexpectedly, Hunan Fangsheng 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 Hunan Fangsheng will offset losses from the drop in Hunan Fangsheng's long position.| Oppein Home vs. Eit Environmental Development | Oppein Home vs. Wangneng Environment Co | Oppein Home vs. Tongxing Environmental Protection | Oppein Home vs. Shenzhen MYS Environmental |
| Hunan Fangsheng vs. Eastroc Beverage Group | Hunan Fangsheng vs. Tonghua Grape Wine | Hunan Fangsheng vs. HanS Laser Tech | Hunan Fangsheng vs. Sharetronic Data 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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