Correlation Between HOB Biotech and 159005
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By analyzing existing cross correlation between HOB Biotech Group and 159005, you can compare the effects of market volatilities on HOB Biotech and 159005 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 HOB Biotech with a short position of 159005. Check out your portfolio center. Please also check ongoing floating volatility patterns of HOB Biotech and 159005.
Diversification Opportunities for HOB Biotech and 159005
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between HOB and 159005 is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding HOB Biotech Group and 159005 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 159005 and HOB Biotech 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 HOB Biotech Group are associated (or correlated) with 159005. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 159005 has no effect on the direction of HOB Biotech i.e., HOB Biotech and 159005 go up and down completely randomly.
Pair Corralation between HOB Biotech and 159005
Assuming the 90 days trading horizon HOB Biotech Group is expected to under-perform the 159005. In addition to that, HOB Biotech is 254.79 times more volatile than 159005. It trades about -0.17 of its total potential returns per unit of risk. 159005 is currently generating about 0.21 per unit of volatility. If you would invest 9,988 in 159005 on September 19, 2024 and sell it today you would earn a total of 12.00 from holding 159005 or generate 0.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HOB Biotech Group vs. 159005
Performance |
| Timeline |
| HOB Biotech Group |
| 159005 |
HOB Biotech and 159005 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HOB Biotech and 159005
The main advantage of trading using opposite HOB Biotech and 159005 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HOB Biotech position performs unexpectedly, 159005 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 159005 will offset losses from the drop in 159005's long position.| HOB Biotech vs. Industrial and Commercial | HOB Biotech vs. Kweichow Moutai Co | HOB Biotech vs. Agricultural Bank of | HOB Biotech vs. China Mobile Limited |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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