Correlation Between Hisense Home and 24SEVENOFFICE GROUP
Can any of the company-specific risk be diversified away by investing in both Hisense Home and 24SEVENOFFICE GROUP 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 Hisense Home and 24SEVENOFFICE GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hisense Home Appliances and 24SEVENOFFICE GROUP AB, you can compare the effects of market volatilities on Hisense Home and 24SEVENOFFICE GROUP 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 Hisense Home with a short position of 24SEVENOFFICE GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hisense Home and 24SEVENOFFICE GROUP.
Diversification Opportunities for Hisense Home and 24SEVENOFFICE GROUP
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hisense and 24SEVENOFFICE is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Hisense Home Appliances and 24SEVENOFFICE GROUP AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 24SEVENOFFICE GROUP and Hisense Home 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 Hisense Home Appliances are associated (or correlated) with 24SEVENOFFICE GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 24SEVENOFFICE GROUP has no effect on the direction of Hisense Home i.e., Hisense Home and 24SEVENOFFICE GROUP go up and down completely randomly.
Pair Corralation between Hisense Home and 24SEVENOFFICE GROUP
Assuming the 90 days horizon Hisense Home Appliances is expected to under-perform the 24SEVENOFFICE GROUP. In addition to that, Hisense Home is 3.63 times more volatile than 24SEVENOFFICE GROUP AB. It trades about -0.14 of its total potential returns per unit of risk. 24SEVENOFFICE GROUP AB is currently generating about -0.21 per unit of volatility. If you would invest 206.00 in 24SEVENOFFICE GROUP AB on August 27, 2024 and sell it today you would lose (7.00) from holding 24SEVENOFFICE GROUP AB or give up 3.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hisense Home Appliances vs. 24SEVENOFFICE GROUP AB
Performance |
| Timeline |
| Hisense Home Appliances |
| 24SEVENOFFICE GROUP |
Hisense Home and 24SEVENOFFICE GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hisense Home and 24SEVENOFFICE GROUP
The main advantage of trading using opposite Hisense Home and 24SEVENOFFICE GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hisense Home position performs unexpectedly, 24SEVENOFFICE GROUP 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 24SEVENOFFICE GROUP will offset losses from the drop in 24SEVENOFFICE GROUP's long position.| Hisense Home vs. CITY OFFICE REIT | Hisense Home vs. Laureate Education | Hisense Home vs. EMBARK EDUCATION LTD | Hisense Home vs. GALENA MINING LTD |
| 24SEVENOFFICE GROUP vs. COMMERCIAL VEHICLE | 24SEVENOFFICE GROUP vs. CeoTronics AG | 24SEVENOFFICE GROUP vs. Ares Management Corp | 24SEVENOFFICE GROUP vs. Waste Management |
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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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