Correlation Between Shandong Homey and 5I5j Holding
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By analyzing existing cross correlation between Shandong Homey Aquatic and 5I5j Holding Group, you can compare the effects of market volatilities on Shandong Homey and 5I5j Holding 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 Shandong Homey with a short position of 5I5j Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Homey and 5I5j Holding.
Diversification Opportunities for Shandong Homey and 5I5j Holding
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shandong and 5I5j is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Homey Aquatic and 5I5j Holding Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 5I5j Holding Group and Shandong Homey 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 Shandong Homey Aquatic are associated (or correlated) with 5I5j Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 5I5j Holding Group has no effect on the direction of Shandong Homey i.e., Shandong Homey and 5I5j Holding go up and down completely randomly.
Pair Corralation between Shandong Homey and 5I5j Holding
Assuming the 90 days trading horizon Shandong Homey Aquatic is expected to generate 1.11 times more return on investment than 5I5j Holding. However, Shandong Homey is 1.11 times more volatile than 5I5j Holding Group. It trades about 0.07 of its potential returns per unit of risk. 5I5j Holding Group is currently generating about -0.08 per unit of risk. If you would invest 207.00 in Shandong Homey Aquatic on October 4, 2024 and sell it today you would earn a total of 29.00 from holding Shandong Homey Aquatic or generate 14.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Shandong Homey Aquatic vs. 5I5j Holding Group
Performance |
Timeline |
Shandong Homey Aquatic |
5I5j Holding Group |
Shandong Homey and 5I5j Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shandong Homey and 5I5j Holding
The main advantage of trading using opposite Shandong Homey and 5I5j Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Homey position performs unexpectedly, 5I5j Holding 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 5I5j Holding will offset losses from the drop in 5I5j Holding's long position.Shandong Homey vs. Industrial and Commercial | Shandong Homey vs. Agricultural Bank of | Shandong Homey vs. China Construction Bank | Shandong Homey vs. Bank of China |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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