Correlation Between Beijing Roborock and Hangzhou Weiguang
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By analyzing existing cross correlation between Beijing Roborock Technology and Hangzhou Weiguang Electronic, you can compare the effects of market volatilities on Beijing Roborock 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 Beijing Roborock with a short position of Hangzhou Weiguang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Roborock and Hangzhou Weiguang.
Diversification Opportunities for Beijing Roborock and Hangzhou Weiguang
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Beijing and Hangzhou is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Roborock Technology and Hangzhou Weiguang Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Weiguang and Beijing Roborock 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 Beijing Roborock Technology 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 Beijing Roborock i.e., Beijing Roborock and Hangzhou Weiguang go up and down completely randomly.
Pair Corralation between Beijing Roborock and Hangzhou Weiguang
Assuming the 90 days trading horizon Beijing Roborock Technology is expected to generate 1.38 times more return on investment than Hangzhou Weiguang. However, Beijing Roborock is 1.38 times more volatile than Hangzhou Weiguang Electronic. It trades about 0.02 of its potential returns per unit of risk. Hangzhou Weiguang Electronic is currently generating about 0.01 per unit of risk. If you would invest 23,947 in Beijing Roborock Technology on October 25, 2024 and sell it today you would lose (425.00) from holding Beijing Roborock Technology or give up 1.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Beijing Roborock Technology vs. Hangzhou Weiguang Electronic
Performance |
| Timeline |
| Beijing Roborock Tec |
| Hangzhou Weiguang |
Beijing Roborock and Hangzhou Weiguang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Roborock and Hangzhou Weiguang
The main advantage of trading using opposite Beijing Roborock and Hangzhou Weiguang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Roborock 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.| Beijing Roborock vs. Zhongzhu Medical Holdings | Beijing Roborock vs. Zhonghong Pulin Medical | Beijing Roborock vs. APT Medical | Beijing Roborock vs. Sunny Loan Top |
| Hangzhou Weiguang vs. Advanced Technology Materials | Hangzhou Weiguang vs. Chongqing Sulian Plastic | Hangzhou Weiguang vs. Aurora Optoelectronics Co | Hangzhou Weiguang vs. GRIPM Advanced Materials |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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