Correlation Between HUAQIN TECHNOLOGY and China Reform
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By analyzing existing cross correlation between HUAQIN TECHNOLOGY LTD and China Reform Health, you can compare the effects of market volatilities on HUAQIN TECHNOLOGY and China Reform 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 HUAQIN TECHNOLOGY with a short position of China Reform. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUAQIN TECHNOLOGY and China Reform.
Diversification Opportunities for HUAQIN TECHNOLOGY and China Reform
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HUAQIN and China is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding HUAQIN TECHNOLOGY LTD and China Reform Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Reform Health and HUAQIN 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 HUAQIN TECHNOLOGY LTD are associated (or correlated) with China Reform. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Reform Health has no effect on the direction of HUAQIN TECHNOLOGY i.e., HUAQIN TECHNOLOGY and China Reform go up and down completely randomly.
Pair Corralation between HUAQIN TECHNOLOGY and China Reform
Assuming the 90 days trading horizon HUAQIN TECHNOLOGY LTD is expected to generate 0.87 times more return on investment than China Reform. However, HUAQIN TECHNOLOGY LTD is 1.14 times less risky than China Reform. It trades about 0.14 of its potential returns per unit of risk. China Reform Health is currently generating about -0.18 per unit of risk. If you would invest 5,890 in HUAQIN TECHNOLOGY LTD on October 24, 2024 and sell it today you would earn a total of 1,665 from holding HUAQIN TECHNOLOGY LTD or generate 28.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
HUAQIN TECHNOLOGY LTD vs. China Reform Health
Performance |
Timeline |
HUAQIN TECHNOLOGY LTD |
China Reform Health |
HUAQIN TECHNOLOGY and China Reform Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HUAQIN TECHNOLOGY and China Reform
The main advantage of trading using opposite HUAQIN TECHNOLOGY and China Reform positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUAQIN TECHNOLOGY position performs unexpectedly, China Reform 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 China Reform will offset losses from the drop in China Reform's long position.HUAQIN TECHNOLOGY vs. Sublime China Information | HUAQIN TECHNOLOGY vs. East Money Information | HUAQIN TECHNOLOGY vs. Guangzhou Ruoyuchen Information | HUAQIN TECHNOLOGY vs. StarPower Semiconductor |
China Reform vs. Servyou Software Group | China Reform vs. Mango Excellent Media | China Reform vs. Shuhua Sports Co | China Reform vs. China National Software |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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