Correlation Between Weihai Honglin and SSAW Hotels
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By analyzing existing cross correlation between Weihai Honglin Electronic and SSAW Hotels Resorts, you can compare the effects of market volatilities on Weihai Honglin and SSAW Hotels 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 Weihai Honglin with a short position of SSAW Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weihai Honglin and SSAW Hotels.
Diversification Opportunities for Weihai Honglin and SSAW Hotels
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Weihai and SSAW is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Weihai Honglin Electronic and SSAW Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSAW Hotels Resorts and Weihai Honglin 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 Weihai Honglin Electronic are associated (or correlated) with SSAW Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSAW Hotels Resorts has no effect on the direction of Weihai Honglin i.e., Weihai Honglin and SSAW Hotels go up and down completely randomly.
Pair Corralation between Weihai Honglin and SSAW Hotels
Assuming the 90 days trading horizon Weihai Honglin Electronic is expected to generate 0.83 times more return on investment than SSAW Hotels. However, Weihai Honglin Electronic is 1.21 times less risky than SSAW Hotels. It trades about 0.12 of its potential returns per unit of risk. SSAW Hotels Resorts is currently generating about -0.08 per unit of risk. If you would invest 1,291 in Weihai Honglin Electronic on October 20, 2024 and sell it today you would earn a total of 270.00 from holding Weihai Honglin Electronic or generate 20.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.46% |
Values | Daily Returns |
Weihai Honglin Electronic vs. SSAW Hotels Resorts
Performance |
Timeline |
Weihai Honglin Electronic |
SSAW Hotels Resorts |
Weihai Honglin and SSAW Hotels Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Weihai Honglin and SSAW Hotels
The main advantage of trading using opposite Weihai Honglin and SSAW Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weihai Honglin position performs unexpectedly, SSAW Hotels 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 SSAW Hotels will offset losses from the drop in SSAW Hotels' long position.Weihai Honglin vs. Songz Automobile Air | ||
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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