Correlation Between Songz Automobile and Huafa Industrial
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By analyzing existing cross correlation between Songz Automobile Air and Huafa Industrial Co, you can compare the effects of market volatilities on Songz Automobile and Huafa 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 Songz Automobile with a short position of Huafa Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Songz Automobile and Huafa Industrial.
Diversification Opportunities for Songz Automobile and Huafa Industrial
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Songz and Huafa is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Songz Automobile Air and Huafa Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huafa Industrial and Songz Automobile 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 Songz Automobile Air are associated (or correlated) with Huafa Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huafa Industrial has no effect on the direction of Songz Automobile i.e., Songz Automobile and Huafa Industrial go up and down completely randomly.
Pair Corralation between Songz Automobile and Huafa Industrial
Assuming the 90 days trading horizon Songz Automobile Air is expected to generate 0.87 times more return on investment than Huafa Industrial. However, Songz Automobile Air is 1.15 times less risky than Huafa Industrial. It trades about 0.12 of its potential returns per unit of risk. Huafa Industrial Co is currently generating about 0.03 per unit of risk. If you would invest 561.00 in Songz Automobile Air on September 25, 2024 and sell it today you would earn a total of 108.00 from holding Songz Automobile Air or generate 19.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Songz Automobile Air vs. Huafa Industrial Co
Performance |
Timeline |
Songz Automobile Air |
Huafa Industrial |
Songz Automobile and Huafa Industrial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Songz Automobile and Huafa Industrial
The main advantage of trading using opposite Songz Automobile and Huafa Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Songz Automobile position performs unexpectedly, Huafa 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 Huafa Industrial will offset losses from the drop in Huafa Industrial's long position.Songz Automobile vs. China Life Insurance | Songz Automobile vs. Cinda Securities Co | Songz Automobile vs. Piotech Inc A | Songz Automobile vs. Dongxing Sec Co |
Huafa Industrial vs. Haima Automobile Group | Huafa Industrial vs. Songz Automobile Air | Huafa Industrial vs. AVIC Fund Management | Huafa Industrial vs. Tsingtao Brewery Co |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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