Correlation Between Weibo Corp and HANOVER
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By analyzing existing cross correlation between Weibo Corp and HANOVER INS GROUP, you can compare the effects of market volatilities on Weibo Corp and HANOVER 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 Weibo Corp with a short position of HANOVER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weibo Corp and HANOVER.
Diversification Opportunities for Weibo Corp and HANOVER
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Weibo and HANOVER is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Weibo Corp and HANOVER INS GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HANOVER INS GROUP and Weibo Corp 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 Weibo Corp are associated (or correlated) with HANOVER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HANOVER INS GROUP has no effect on the direction of Weibo Corp i.e., Weibo Corp and HANOVER go up and down completely randomly.
Pair Corralation between Weibo Corp and HANOVER
Allowing for the 90-day total investment horizon Weibo Corp is expected to generate 9.02 times more return on investment than HANOVER. However, Weibo Corp is 9.02 times more volatile than HANOVER INS GROUP. It trades about 0.14 of its potential returns per unit of risk. HANOVER INS GROUP is currently generating about -0.16 per unit of risk. If you would invest 888.00 in Weibo Corp on September 3, 2024 and sell it today you would earn a total of 72.00 from holding Weibo Corp or generate 8.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Weibo Corp vs. HANOVER INS GROUP
Performance |
| Timeline |
| Weibo Corp |
| HANOVER INS GROUP |
Weibo Corp and HANOVER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weibo Corp and HANOVER
The main advantage of trading using opposite Weibo Corp and HANOVER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weibo Corp position performs unexpectedly, HANOVER 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 HANOVER will offset losses from the drop in HANOVER's long position.| Weibo Corp vs. YY Inc Class | Weibo Corp vs. DouYu International Holdings | Weibo Corp vs. Tencent Music Entertainment | Weibo Corp vs. Autohome |
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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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