Correlation Between Hengli Industrial and Rongcheer Industrial
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hengli Industrial Development and Rongcheer Industrial Technology, you can compare the effects of market volatilities on Hengli Industrial and Rongcheer Industrial 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 Hengli Industrial with a short position of Rongcheer Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Industrial and Rongcheer Industrial.
Diversification Opportunities for Hengli Industrial and Rongcheer Industrial
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hengli and Rongcheer is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Industrial Development and Rongcheer Industrial Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rongcheer Industrial and Hengli Industrial 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 Hengli Industrial Development are associated (or correlated) with Rongcheer Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rongcheer Industrial has no effect on the direction of Hengli Industrial i.e., Hengli Industrial and Rongcheer Industrial go up and down completely randomly.
Pair Corralation between Hengli Industrial and Rongcheer Industrial
Assuming the 90 days trading horizon Hengli Industrial is expected to generate 1.19 times less return on investment than Rongcheer Industrial. But when comparing it to its historical volatility, Hengli Industrial Development is 1.35 times less risky than Rongcheer Industrial. It trades about 0.14 of its potential returns per unit of risk. Rongcheer Industrial Technology is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 4,250 in Rongcheer Industrial Technology on September 23, 2024 and sell it today you would earn a total of 1,502 from holding Rongcheer Industrial Technology or generate 35.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Hengli Industrial Development vs. Rongcheer Industrial Technolog
Performance |
Timeline |
Hengli Industrial |
Rongcheer Industrial |
Hengli Industrial and Rongcheer Industrial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hengli Industrial and Rongcheer Industrial
The main advantage of trading using opposite Hengli Industrial and Rongcheer Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Industrial position performs unexpectedly, Rongcheer Industrial 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 Rongcheer Industrial will offset losses from the drop in Rongcheer Industrial's long position.Hengli Industrial vs. China Life Insurance | Hengli Industrial vs. Cinda Securities Co | Hengli Industrial vs. Piotech Inc A | Hengli Industrial vs. Dongxing Sec Co |
Rongcheer Industrial vs. Bank of China | Rongcheer Industrial vs. Kweichow Moutai Co | Rongcheer Industrial vs. PetroChina Co Ltd | Rongcheer Industrial vs. Bank of Communications |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
FinTech Suite Use AI to screen and filter profitable investment opportunities |