Correlation Between Oppein Home and Allied Machinery
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By analyzing existing cross correlation between Oppein Home Group and Allied Machinery Co, you can compare the effects of market volatilities on Oppein Home and Allied Machinery 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 Allied Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppein Home and Allied Machinery.
Diversification Opportunities for Oppein Home and Allied Machinery
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Oppein and Allied is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Oppein Home Group and Allied Machinery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allied Machinery 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 Allied Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allied Machinery has no effect on the direction of Oppein Home i.e., Oppein Home and Allied Machinery go up and down completely randomly.
Pair Corralation between Oppein Home and Allied Machinery
Assuming the 90 days trading horizon Oppein Home Group is expected to generate 1.07 times more return on investment than Allied Machinery. However, Oppein Home is 1.07 times more volatile than Allied Machinery Co. It trades about -0.01 of its potential returns per unit of risk. Allied Machinery Co is currently generating about -0.04 per unit of risk. If you would invest 9,201 in Oppein Home Group on September 12, 2024 and sell it today you would lose (1,736) from holding Oppein Home Group or give up 18.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppein Home Group vs. Allied Machinery Co
Performance |
| Timeline |
| Oppein Home Group |
| Allied Machinery |
Oppein Home and Allied Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppein Home and Allied Machinery
The main advantage of trading using opposite Oppein Home and Allied Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppein Home position performs unexpectedly, Allied Machinery 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 Allied Machinery will offset losses from the drop in Allied Machinery's long position.| Oppein Home vs. Shenzhen Centralcon Investment | Oppein Home vs. Easyhome New Retail | Oppein Home vs. Kunwu Jiuding Investment | Oppein Home vs. Heilongjiang Transport Development |
| Allied Machinery vs. Peoples Insurance of | Allied Machinery vs. Nanxing Furniture Machinery | Allied Machinery vs. Oppein Home Group | Allied Machinery vs. Bus Online 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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