Correlation Between Hilton Metal and HEG
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By analyzing existing cross correlation between Hilton Metal Forging and HEG Limited, you can compare the effects of market volatilities on Hilton Metal and HEG 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 Hilton Metal with a short position of HEG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hilton Metal and HEG.
Diversification Opportunities for Hilton Metal and HEG
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hilton and HEG is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Hilton Metal Forging and HEG Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEG Limited and Hilton Metal 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 Hilton Metal Forging are associated (or correlated) with HEG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEG Limited has no effect on the direction of Hilton Metal i.e., Hilton Metal and HEG go up and down completely randomly.
Pair Corralation between Hilton Metal and HEG
Assuming the 90 days trading horizon Hilton Metal Forging is expected to generate 0.64 times more return on investment than HEG. However, Hilton Metal Forging is 1.56 times less risky than HEG. It trades about 0.11 of its potential returns per unit of risk. HEG Limited is currently generating about 0.05 per unit of risk. If you would invest 8,514 in Hilton Metal Forging on September 25, 2024 and sell it today you would earn a total of 1,455 from holding Hilton Metal Forging or generate 17.09% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Hilton Metal Forging vs. HEG Limited
Performance |
Timeline |
Hilton Metal Forging |
HEG Limited |
Hilton Metal and HEG Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hilton Metal and HEG
The main advantage of trading using opposite Hilton Metal and HEG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hilton Metal position performs unexpectedly, HEG 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 HEG will offset losses from the drop in HEG's long position.Hilton Metal vs. Xchanging Solutions Limited | Hilton Metal vs. Kingfa Science Technology | Hilton Metal vs. Rico Auto Industries | Hilton Metal vs. GACM Technologies Limited |
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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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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