Correlation Between Hunan Investment and Gansu Yasheng
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By analyzing existing cross correlation between Hunan Investment Group and Gansu Yasheng Industrial, you can compare the effects of market volatilities on Hunan Investment and Gansu Yasheng 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 Hunan Investment with a short position of Gansu Yasheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Investment and Gansu Yasheng.
Diversification Opportunities for Hunan Investment and Gansu Yasheng
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hunan and Gansu is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Investment Group and Gansu Yasheng Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Yasheng Industrial and Hunan Investment 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 Hunan Investment Group are associated (or correlated) with Gansu Yasheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Yasheng Industrial has no effect on the direction of Hunan Investment i.e., Hunan Investment and Gansu Yasheng go up and down completely randomly.
Pair Corralation between Hunan Investment and Gansu Yasheng
Assuming the 90 days trading horizon Hunan Investment Group is expected to generate 1.03 times more return on investment than Gansu Yasheng. However, Hunan Investment is 1.03 times more volatile than Gansu Yasheng Industrial. It trades about -0.22 of its potential returns per unit of risk. Gansu Yasheng Industrial is currently generating about -0.28 per unit of risk. If you would invest 574.00 in Hunan Investment Group on October 18, 2024 and sell it today you would lose (62.00) from holding Hunan Investment Group or give up 10.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Investment Group vs. Gansu Yasheng Industrial
Performance |
| Timeline |
| Hunan Investment |
| Gansu Yasheng Industrial |
Hunan Investment and Gansu Yasheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Investment and Gansu Yasheng
The main advantage of trading using opposite Hunan Investment and Gansu Yasheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Investment position performs unexpectedly, Gansu Yasheng 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 Gansu Yasheng will offset losses from the drop in Gansu Yasheng's long position.| Hunan Investment vs. Thinkon Semiconductor Jinzhou | Hunan Investment vs. Zhengzhou Qianweiyangchu Food | Hunan Investment vs. Shanghai Ziyan Foods | Hunan Investment vs. Great Sun Foods Co |
| Gansu Yasheng vs. Zhengzhou Qianweiyangchu Food | Gansu Yasheng vs. Jiahe Foods Industry | Gansu Yasheng vs. Hangzhou Guotai Environmental | Gansu Yasheng vs. Central Plains Environment |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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