Correlation Between Hygon Information and INKON Life
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By analyzing existing cross correlation between Hygon Information Technology and INKON Life Technology, you can compare the effects of market volatilities on Hygon Information and INKON Life 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 Hygon Information with a short position of INKON Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hygon Information and INKON Life.
Diversification Opportunities for Hygon Information and INKON Life
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hygon and INKON is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Hygon Information Technology and INKON Life Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INKON Life Technology and Hygon Information 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 Hygon Information Technology are associated (or correlated) with INKON Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INKON Life Technology has no effect on the direction of Hygon Information i.e., Hygon Information and INKON Life go up and down completely randomly.
Pair Corralation between Hygon Information and INKON Life
Assuming the 90 days trading horizon Hygon Information Technology is expected to generate 1.1 times more return on investment than INKON Life. However, Hygon Information is 1.1 times more volatile than INKON Life Technology. It trades about 0.11 of its potential returns per unit of risk. INKON Life Technology is currently generating about 0.04 per unit of risk. If you would invest 7,854 in Hygon Information Technology on October 12, 2024 and sell it today you would earn a total of 6,966 from holding Hygon Information Technology or generate 88.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hygon Information Technology vs. INKON Life Technology
Performance |
| Timeline |
| Hygon Information |
| INKON Life Technology |
Hygon Information and INKON Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hygon Information and INKON Life
The main advantage of trading using opposite Hygon Information and INKON Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hygon Information position performs unexpectedly, INKON Life 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 INKON Life will offset losses from the drop in INKON Life's long position.| Hygon Information vs. Duzhe Publishing Media | Hygon Information vs. Beijing Enlight Media | Hygon Information vs. Xinjiang Baodi Mining | Hygon Information vs. Guangzhou Jinyi Media |
| INKON Life vs. Guangzhou Jinyi Media | INKON Life vs. Lontium Semiconductor Corp | INKON Life vs. Shandong Longquan Pipeline | INKON Life vs. Southern PublishingMedia 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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