Correlation Between Xiamen Insight and Hangzhou Guotai
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By analyzing existing cross correlation between Xiamen Insight Investment and Hangzhou Guotai Environmental, you can compare the effects of market volatilities on Xiamen Insight and Hangzhou Guotai 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 Xiamen Insight with a short position of Hangzhou Guotai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Insight and Hangzhou Guotai.
Diversification Opportunities for Xiamen Insight and Hangzhou Guotai
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xiamen and Hangzhou is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Insight Investment and Hangzhou Guotai Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Guotai Envi and Xiamen Insight 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 Xiamen Insight Investment are associated (or correlated) with Hangzhou Guotai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Guotai Envi has no effect on the direction of Xiamen Insight i.e., Xiamen Insight and Hangzhou Guotai go up and down completely randomly.
Pair Corralation between Xiamen Insight and Hangzhou Guotai
Assuming the 90 days trading horizon Xiamen Insight Investment is expected to generate 1.06 times more return on investment than Hangzhou Guotai. However, Xiamen Insight is 1.06 times more volatile than Hangzhou Guotai Environmental. It trades about 0.06 of its potential returns per unit of risk. Hangzhou Guotai Environmental is currently generating about 0.01 per unit of risk. If you would invest 2,036 in Xiamen Insight Investment on October 30, 2024 and sell it today you would earn a total of 2,178 from holding Xiamen Insight Investment or generate 106.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.89% |
| Values | Daily Returns |
Xiamen Insight Investment vs. Hangzhou Guotai Environmental
Performance |
| Timeline |
| Xiamen Insight Investment |
| Hangzhou Guotai Envi |
Xiamen Insight and Hangzhou Guotai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Insight and Hangzhou Guotai
The main advantage of trading using opposite Xiamen Insight and Hangzhou Guotai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Insight position performs unexpectedly, Hangzhou Guotai 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 Guotai will offset losses from the drop in Hangzhou Guotai's long position.| Xiamen Insight vs. Semiconductor Manufacturing Electronics | Xiamen Insight vs. Changjiang Publishing Media | Xiamen Insight vs. Mango Excellent Media | Xiamen Insight vs. Jiangxi Lianchuang Opto electronic |
| Hangzhou Guotai vs. Industrial and Commercial | Hangzhou Guotai vs. Agricultural Bank of | Hangzhou Guotai vs. China Construction Bank | Hangzhou Guotai vs. Bank of China |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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