Correlation Between Hefei Metalforming and Guangdong Qunxing
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By analyzing existing cross correlation between Hefei Metalforming Mach and Guangdong Qunxing Toys, you can compare the effects of market volatilities on Hefei Metalforming and Guangdong Qunxing 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 Hefei Metalforming with a short position of Guangdong Qunxing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hefei Metalforming and Guangdong Qunxing.
Diversification Opportunities for Hefei Metalforming and Guangdong Qunxing
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hefei and Guangdong is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Hefei Metalforming Mach and Guangdong Qunxing Toys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Qunxing Toys and Hefei Metalforming 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 Hefei Metalforming Mach are associated (or correlated) with Guangdong Qunxing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Qunxing Toys has no effect on the direction of Hefei Metalforming i.e., Hefei Metalforming and Guangdong Qunxing go up and down completely randomly.
Pair Corralation between Hefei Metalforming and Guangdong Qunxing
Assuming the 90 days trading horizon Hefei Metalforming Mach is expected to under-perform the Guangdong Qunxing. But the stock apears to be less risky and, when comparing its historical volatility, Hefei Metalforming Mach is 1.45 times less risky than Guangdong Qunxing. The stock trades about -0.26 of its potential returns per unit of risk. The Guangdong Qunxing Toys is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 658.00 in Guangdong Qunxing Toys on September 22, 2024 and sell it today you would earn a total of 96.00 from holding Guangdong Qunxing Toys or generate 14.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Hefei Metalforming Mach vs. Guangdong Qunxing Toys
Performance |
Timeline |
Hefei Metalforming Mach |
Guangdong Qunxing Toys |
Hefei Metalforming and Guangdong Qunxing Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hefei Metalforming and Guangdong Qunxing
The main advantage of trading using opposite Hefei Metalforming and Guangdong Qunxing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hefei Metalforming position performs unexpectedly, Guangdong Qunxing 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 Guangdong Qunxing will offset losses from the drop in Guangdong Qunxing's long position.Hefei Metalforming vs. Industrial and Commercial | Hefei Metalforming vs. Kweichow Moutai Co | Hefei Metalforming vs. Agricultural Bank of | Hefei Metalforming vs. China Mobile Limited |
Guangdong Qunxing vs. Lutian Machinery Co | Guangdong Qunxing vs. China Longyuan Power | Guangdong Qunxing vs. PetroChina Co Ltd | Guangdong Qunxing vs. Bank of China |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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