Correlation Between BOS BETTER and HILONG HOLDING
Can any of the company-specific risk be diversified away by investing in both BOS BETTER and HILONG HOLDING 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 BOS BETTER and HILONG HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BOS BETTER ONLINE and HILONG HOLDING LTD, you can compare the effects of market volatilities on BOS BETTER and HILONG HOLDING 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 BOS BETTER with a short position of HILONG HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS BETTER and HILONG HOLDING.
Diversification Opportunities for BOS BETTER and HILONG HOLDING
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between BOS and HILONG is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding BOS BETTER ONLINE and HILONG HOLDING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HILONG HOLDING LTD and BOS BETTER 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 BOS BETTER ONLINE are associated (or correlated) with HILONG HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HILONG HOLDING LTD has no effect on the direction of BOS BETTER i.e., BOS BETTER and HILONG HOLDING go up and down completely randomly.
Pair Corralation between BOS BETTER and HILONG HOLDING
If you would invest 1.00 in HILONG HOLDING LTD on September 13, 2024 and sell it today you would earn a total of 0.00 from holding HILONG HOLDING LTD or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
BOS BETTER ONLINE vs. HILONG HOLDING LTD
Performance |
| Timeline |
| BOS BETTER ONLINE |
| HILONG HOLDING LTD |
BOS BETTER and HILONG HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOS BETTER and HILONG HOLDING
The main advantage of trading using opposite BOS BETTER and HILONG HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOS BETTER position performs unexpectedly, HILONG HOLDING 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 HILONG HOLDING will offset losses from the drop in HILONG HOLDING's long position.The idea behind BOS BETTER ONLINE and HILONG HOLDING LTD 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.| HILONG HOLDING vs. PennantPark Investment | HILONG HOLDING vs. REINET INVESTMENTS SCA | HILONG HOLDING vs. Strategic Investments AS | HILONG HOLDING vs. EAT WELL 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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