Correlation Between China Hongqiao and 00108WAF7
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Hongqiao Group and AEP TEX INC, you can compare the effects of market volatilities on China Hongqiao and 00108WAF7 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 China Hongqiao with a short position of 00108WAF7. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Hongqiao and 00108WAF7.
Diversification Opportunities for China Hongqiao and 00108WAF7
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and 00108WAF7 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Hongqiao Group and AEP TEX INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEP TEX INC and China Hongqiao 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 China Hongqiao Group are associated (or correlated) with 00108WAF7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEP TEX INC has no effect on the direction of China Hongqiao i.e., China Hongqiao and 00108WAF7 go up and down completely randomly.
Pair Corralation between China Hongqiao and 00108WAF7
Assuming the 90 days horizon China Hongqiao is expected to generate 117.22 times less return on investment than 00108WAF7. But when comparing it to its historical volatility, China Hongqiao Group is 80.61 times less risky than 00108WAF7. It trades about 0.08 of its potential returns per unit of risk. AEP TEX INC is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 7,391 in AEP TEX INC on November 9, 2024 and sell it today you would earn a total of 7.00 from holding AEP TEX INC or generate 0.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 69.32% |
| Values | Daily Returns |
China Hongqiao Group vs. AEP TEX INC
Performance |
| Timeline |
| China Hongqiao Group |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| AEP TEX INC |
China Hongqiao and 00108WAF7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Hongqiao and 00108WAF7
The main advantage of trading using opposite China Hongqiao and 00108WAF7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Hongqiao position performs unexpectedly, 00108WAF7 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 00108WAF7 will offset losses from the drop in 00108WAF7's long position.| China Hongqiao vs. Constellium Nv | China Hongqiao vs. Century Aluminum | China Hongqiao vs. Alcoa Corp | China Hongqiao vs. China Hongqiao Group |
| 00108WAF7 vs. BioNTech SE | 00108WAF7 vs. Molecular Partners AG | 00108WAF7 vs. Nuvalent | 00108WAF7 vs. Regeneron Pharmaceuticals |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |