Correlation Between Beijing Roborock and Wenzhou Hongfeng
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By analyzing existing cross correlation between Beijing Roborock Technology and Wenzhou Hongfeng Electrical, you can compare the effects of market volatilities on Beijing Roborock and Wenzhou Hongfeng 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 Wenzhou Hongfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Roborock and Wenzhou Hongfeng.
Diversification Opportunities for Beijing Roborock and Wenzhou Hongfeng
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Beijing and Wenzhou is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Roborock Technology and Wenzhou Hongfeng Electrical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wenzhou Hongfeng Ele 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 Wenzhou Hongfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wenzhou Hongfeng Ele has no effect on the direction of Beijing Roborock i.e., Beijing Roborock and Wenzhou Hongfeng go up and down completely randomly.
Pair Corralation between Beijing Roborock and Wenzhou Hongfeng
Assuming the 90 days trading horizon Beijing Roborock Technology is expected to generate 0.93 times more return on investment than Wenzhou Hongfeng. However, Beijing Roborock Technology is 1.08 times less risky than Wenzhou Hongfeng. It trades about 0.08 of its potential returns per unit of risk. Wenzhou Hongfeng Electrical is currently generating about -0.01 per unit of risk. If you would invest 22,300 in Beijing Roborock Technology on September 12, 2024 and sell it today you would earn a total of 864.00 from holding Beijing Roborock Technology or generate 3.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Beijing Roborock Technology vs. Wenzhou Hongfeng Electrical
Performance |
| Timeline |
| Beijing Roborock Tec |
| Wenzhou Hongfeng Ele |
Beijing Roborock and Wenzhou Hongfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Roborock and Wenzhou Hongfeng
The main advantage of trading using opposite Beijing Roborock and Wenzhou Hongfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Roborock position performs unexpectedly, Wenzhou Hongfeng 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 Wenzhou Hongfeng will offset losses from the drop in Wenzhou Hongfeng's long position.| Beijing Roborock vs. Agricultural Bank of | Beijing Roborock vs. Industrial and Commercial | Beijing Roborock vs. Bank of China | Beijing Roborock vs. PetroChina Co Ltd |
| Wenzhou Hongfeng vs. YLZ Information Tech | Wenzhou Hongfeng vs. Xiamen Goldenhome Co | Wenzhou Hongfeng vs. ButOne Information Corp | Wenzhou Hongfeng vs. Nanxing Furniture Machinery |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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