Correlation Between Hygon Information and Luolai Home
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By analyzing existing cross correlation between Hygon Information Technology and Luolai Home Textile, you can compare the effects of market volatilities on Hygon Information and Luolai Home 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 Hygon Information with a short position of Luolai Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hygon Information and Luolai Home.
Diversification Opportunities for Hygon Information and Luolai Home
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hygon and Luolai is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Hygon Information Technology and Luolai Home Textile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luolai Home Textile and Hygon Information 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 Hygon Information Technology are associated (or correlated) with Luolai Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luolai Home Textile has no effect on the direction of Hygon Information i.e., Hygon Information and Luolai Home go up and down completely randomly.
Pair Corralation between Hygon Information and Luolai Home
Assuming the 90 days trading horizon Hygon Information Technology is expected to generate 2.22 times more return on investment than Luolai Home. However, Hygon Information is 2.22 times more volatile than Luolai Home Textile. It trades about 0.09 of its potential returns per unit of risk. Luolai Home Textile is currently generating about -0.03 per unit of risk. If you would invest 4,054 in Hygon Information Technology on October 4, 2024 and sell it today you would earn a total of 10,925 from holding Hygon Information Technology or generate 269.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Hygon Information Technology vs. Luolai Home Textile
Performance |
Timeline |
Hygon Information |
Luolai Home Textile |
Hygon Information and Luolai Home Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hygon Information and Luolai Home
The main advantage of trading using opposite Hygon Information and Luolai Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hygon Information position performs unexpectedly, Luolai Home 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 Luolai Home will offset losses from the drop in Luolai Home's long position.Hygon Information vs. Industrial and Commercial | Hygon Information vs. Kweichow Moutai Co | Hygon Information vs. Agricultural Bank of | Hygon Information vs. PetroChina Co Ltd |
Luolai Home vs. New China Life | Luolai Home vs. Ming Yang Smart | Luolai Home vs. 159005 | Luolai Home vs. Loctek Ergonomic Technology |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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