Correlation Between ACM Research and Huizhou Speed
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By analyzing existing cross correlation between ACM Research Shanghai and Huizhou Speed Wireless, you can compare the effects of market volatilities on ACM Research and Huizhou Speed 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 ACM Research with a short position of Huizhou Speed. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACM Research and Huizhou Speed.
Diversification Opportunities for ACM Research and Huizhou Speed
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ACM and Huizhou is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding ACM Research Shanghai and Huizhou Speed Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huizhou Speed Wireless and ACM Research 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 ACM Research Shanghai are associated (or correlated) with Huizhou Speed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huizhou Speed Wireless has no effect on the direction of ACM Research i.e., ACM Research and Huizhou Speed go up and down completely randomly.
Pair Corralation between ACM Research and Huizhou Speed
Assuming the 90 days trading horizon ACM Research Shanghai is expected to generate 0.66 times more return on investment than Huizhou Speed. However, ACM Research Shanghai is 1.52 times less risky than Huizhou Speed. It trades about -0.11 of its potential returns per unit of risk. Huizhou Speed Wireless is currently generating about -0.13 per unit of risk. If you would invest 10,865 in ACM Research Shanghai on September 27, 2024 and sell it today you would lose (514.00) from holding ACM Research Shanghai or give up 4.73% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
ACM Research Shanghai vs. Huizhou Speed Wireless
Performance |
Timeline |
ACM Research Shanghai |
Huizhou Speed Wireless |
ACM Research and Huizhou Speed Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ACM Research and Huizhou Speed
The main advantage of trading using opposite ACM Research and Huizhou Speed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACM Research position performs unexpectedly, Huizhou Speed 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 Huizhou Speed will offset losses from the drop in Huizhou Speed's long position.ACM Research vs. Ming Yang Smart | ACM Research vs. 159681 | ACM Research vs. 159005 | ACM Research vs. Loctek Ergonomic Technology |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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