Correlation Between Hygon Information and HP
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By analyzing existing cross correlation between Hygon Information Technology and HP Inc, you can compare the effects of market volatilities on Hygon Information and HP 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 HP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hygon Information and HP.
Diversification Opportunities for Hygon Information and HP
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hygon and HP is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Hygon Information Technology and HP Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HP Inc 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 HP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HP Inc has no effect on the direction of Hygon Information i.e., Hygon Information and HP go up and down completely randomly.
Pair Corralation between Hygon Information and HP
Assuming the 90 days trading horizon Hygon Information Technology is expected to generate 3.23 times more return on investment than HP. However, Hygon Information is 3.23 times more volatile than HP Inc. It trades about 0.2 of its potential returns per unit of risk. HP Inc is currently generating about 0.08 per unit of risk. If you would invest 7,625 in Hygon Information Technology on August 23, 2024 and sell it today you would earn a total of 5,225 from holding Hygon Information Technology or generate 68.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.63% |
| Values | Daily Returns |
Hygon Information Technology vs. HP Inc
Performance |
| Timeline |
| Hygon Information |
| HP Inc |
Hygon Information and HP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hygon Information and HP
The main advantage of trading using opposite Hygon Information and HP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hygon Information position performs unexpectedly, HP 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 HP will offset losses from the drop in HP's long position.| Hygon Information vs. BeiGene | Hygon Information vs. Kweichow Moutai Co | Hygon Information vs. Beijing Roborock Technology | Hygon Information vs. G bits Network 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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