Correlation Between HOB Biotech and 159681
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By analyzing existing cross correlation between HOB Biotech Group and 159681, you can compare the effects of market volatilities on HOB Biotech and 159681 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 159681. Check out your portfolio center. Please also check ongoing floating volatility patterns of HOB Biotech and 159681.
Diversification Opportunities for HOB Biotech and 159681
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HOB and 159681 is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding HOB Biotech Group and 159681 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 159681 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 159681. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 159681 has no effect on the direction of HOB Biotech i.e., HOB Biotech and 159681 go up and down completely randomly.
Pair Corralation between HOB Biotech and 159681
Assuming the 90 days trading horizon HOB Biotech Group is expected to under-perform the 159681. In addition to that, HOB Biotech is 3.38 times more volatile than 159681. It trades about -0.17 of its total potential returns per unit of risk. 159681 is currently generating about 0.03 per unit of volatility. If you would invest 96.00 in 159681 on September 19, 2024 and sell it today you would earn a total of 1.00 from holding 159681 or generate 1.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HOB Biotech Group vs. 159681
Performance |
| Timeline |
| HOB Biotech Group |
| 159681 |
HOB Biotech and 159681 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HOB Biotech and 159681
The main advantage of trading using opposite HOB Biotech and 159681 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HOB Biotech position performs unexpectedly, 159681 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 159681 will offset losses from the drop in 159681'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 |
| 159681 vs. Shenzhen MTC Co | 159681 vs. Ming Yang Smart | 159681 vs. Changzhou Almaden Co | 159681 vs. 159005 |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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