Correlation Between Viomi Technology and Traeger
Can any of the company-specific risk be diversified away by investing in both Viomi Technology and Traeger 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 Viomi Technology and Traeger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viomi Technology ADR and Traeger, you can compare the effects of market volatilities on Viomi Technology and Traeger 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 Viomi Technology with a short position of Traeger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viomi Technology and Traeger.
Diversification Opportunities for Viomi Technology and Traeger
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Viomi and Traeger is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Viomi Technology ADR and Traeger in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Traeger and Viomi Technology 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 Viomi Technology ADR are associated (or correlated) with Traeger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Traeger has no effect on the direction of Viomi Technology i.e., Viomi Technology and Traeger go up and down completely randomly.
Pair Corralation between Viomi Technology and Traeger
Given the investment horizon of 90 days Viomi Technology ADR is expected to generate 0.96 times more return on investment than Traeger. However, Viomi Technology ADR is 1.04 times less risky than Traeger. It trades about 0.04 of its potential returns per unit of risk. Traeger is currently generating about 0.02 per unit of risk. If you would invest 112.00 in Viomi Technology ADR on September 2, 2024 and sell it today you would earn a total of 55.00 from holding Viomi Technology ADR or generate 49.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Viomi Technology ADR vs. Traeger
Performance |
| Timeline |
| Viomi Technology ADR |
| Traeger |
Viomi Technology and Traeger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viomi Technology and Traeger
The main advantage of trading using opposite Viomi Technology and Traeger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viomi Technology position performs unexpectedly, Traeger 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 Traeger will offset losses from the drop in Traeger's long position.| Viomi Technology vs. Energy Focu | Viomi Technology vs. Flexsteel Industries | Viomi Technology vs. Ethan Allen Interiors | Viomi Technology vs. FGI Industries |
| Traeger vs. Bassett Furniture Industries | Traeger vs. Ethan Allen Interiors | Traeger vs. Natuzzi SpA | Traeger vs. Flexsteel Industries |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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