Correlation Between China Union and Hangzhou EZVIZ
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By analyzing existing cross correlation between China Union Holdings and Hangzhou EZVIZ Network, you can compare the effects of market volatilities on China Union and Hangzhou EZVIZ 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 China Union with a short position of Hangzhou EZVIZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Union and Hangzhou EZVIZ.
Diversification Opportunities for China Union and Hangzhou EZVIZ
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Hangzhou is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding China Union Holdings and Hangzhou EZVIZ Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou EZVIZ Network and China Union 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 China Union Holdings are associated (or correlated) with Hangzhou EZVIZ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou EZVIZ Network has no effect on the direction of China Union i.e., China Union and Hangzhou EZVIZ go up and down completely randomly.
Pair Corralation between China Union and Hangzhou EZVIZ
Assuming the 90 days trading horizon China Union Holdings is expected to generate 1.03 times more return on investment than Hangzhou EZVIZ. However, China Union is 1.03 times more volatile than Hangzhou EZVIZ Network. It trades about 0.07 of its potential returns per unit of risk. Hangzhou EZVIZ Network is currently generating about -0.02 per unit of risk. If you would invest 327.00 in China Union Holdings on September 27, 2024 and sell it today you would earn a total of 84.00 from holding China Union Holdings or generate 25.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Union Holdings vs. Hangzhou EZVIZ Network
Performance |
| Timeline |
| China Union Holdings |
| Hangzhou EZVIZ Network |
China Union and Hangzhou EZVIZ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Union and Hangzhou EZVIZ
The main advantage of trading using opposite China Union and Hangzhou EZVIZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Union position performs unexpectedly, Hangzhou EZVIZ 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 Hangzhou EZVIZ will offset losses from the drop in Hangzhou EZVIZ's long position.| China Union vs. PetroChina Co Ltd | China Union vs. China Mobile Limited | China Union vs. CNOOC Limited | China Union vs. Ping An Insurance |
| Hangzhou EZVIZ vs. Hubeiyichang Transportation Group | Hangzhou EZVIZ vs. Hengli Petrochemical Co | Hangzhou EZVIZ vs. Sichuan Fulin Transportation | Hangzhou EZVIZ vs. RoadMain T 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 CEOs Directory module to screen CEOs from public companies around the world.
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