Correlation Between HOB Biotech and Senci Electric
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By analyzing existing cross correlation between HOB Biotech Group and Senci Electric Machinery, you can compare the effects of market volatilities on HOB Biotech and Senci Electric 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 Senci Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of HOB Biotech and Senci Electric.
Diversification Opportunities for HOB Biotech and Senci Electric
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HOB and Senci is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding HOB Biotech Group and Senci Electric Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senci Electric Machinery 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 Senci Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senci Electric Machinery has no effect on the direction of HOB Biotech i.e., HOB Biotech and Senci Electric go up and down completely randomly.
Pair Corralation between HOB Biotech and Senci Electric
Assuming the 90 days trading horizon HOB Biotech Group is expected to generate 2.72 times more return on investment than Senci Electric. However, HOB Biotech is 2.72 times more volatile than Senci Electric Machinery. It trades about 0.37 of its potential returns per unit of risk. Senci Electric Machinery is currently generating about 0.17 per unit of risk. If you would invest 2,358 in HOB Biotech Group on September 12, 2024 and sell it today you would earn a total of 8,642 from holding HOB Biotech Group or generate 366.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HOB Biotech Group vs. Senci Electric Machinery
Performance |
| Timeline |
| HOB Biotech Group |
| Senci Electric Machinery |
HOB Biotech and Senci Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HOB Biotech and Senci Electric
The main advantage of trading using opposite HOB Biotech and Senci Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HOB Biotech position performs unexpectedly, Senci Electric 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 Senci Electric will offset losses from the drop in Senci Electric'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 |
| Senci Electric vs. Zhongrun Resources Investment | Senci Electric vs. Beijing Mainstreets Investment | Senci Electric vs. China Asset Management | Senci Electric vs. Henan Shuanghui Investment |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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