Correlation Between HILONG HOLDING and BOS BETTER

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both HILONG HOLDING and BOS BETTER at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining HILONG HOLDING and BOS BETTER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HILONG HOLDING LTD and BOS BETTER ONLINE, you can compare the effects of market volatilities on HILONG HOLDING and BOS BETTER 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 HILONG HOLDING with a short position of BOS BETTER. Check out your portfolio center. Please also check ongoing floating volatility patterns of HILONG HOLDING and BOS BETTER.

Diversification Opportunities for HILONG HOLDING and BOS BETTER

1.0
  Correlation Coefficient

No risk reduction

The 3 months correlation between HILONG and BOS is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding HILONG HOLDING LTD and BOS BETTER ONLINE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOS BETTER ONLINE and HILONG HOLDING 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 HILONG HOLDING LTD are associated (or correlated) with BOS BETTER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOS BETTER ONLINE has no effect on the direction of HILONG HOLDING i.e., HILONG HOLDING and BOS BETTER go up and down completely randomly.

Pair Corralation between HILONG HOLDING and BOS BETTER

If you would invest  236.00  in BOS BETTER ONLINE on September 13, 2024 and sell it today you would earn a total of  0.00  from holding BOS BETTER ONLINE or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy95.45%
ValuesDaily Returns

HILONG HOLDING LTD  vs.  BOS BETTER ONLINE

 Performance 
       Timeline  
HILONG HOLDING LTD 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days HILONG HOLDING LTD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, HILONG HOLDING is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
BOS BETTER ONLINE 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days BOS BETTER ONLINE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, BOS BETTER is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

HILONG HOLDING and BOS BETTER Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with HILONG HOLDING and BOS BETTER

The main advantage of trading using opposite HILONG HOLDING and BOS BETTER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HILONG HOLDING position performs unexpectedly, BOS BETTER 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 BOS BETTER will offset losses from the drop in BOS BETTER's long position.
The idea behind HILONG HOLDING LTD and BOS BETTER ONLINE pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

Other Complementary Tools

Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings