Correlation Between Hunan Investment and GreenTech Environmental
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By analyzing existing cross correlation between Hunan Investment Group and GreenTech Environmental Co, you can compare the effects of market volatilities on Hunan Investment and GreenTech Environmental 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 GreenTech Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Investment and GreenTech Environmental.
Diversification Opportunities for Hunan Investment and GreenTech Environmental
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hunan and GreenTech is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Investment Group and GreenTech Environmental Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenTech Environmental 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 GreenTech Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenTech Environmental has no effect on the direction of Hunan Investment i.e., Hunan Investment and GreenTech Environmental go up and down completely randomly.
Pair Corralation between Hunan Investment and GreenTech Environmental
Assuming the 90 days trading horizon Hunan Investment Group is expected to generate 0.84 times more return on investment than GreenTech Environmental. However, Hunan Investment Group is 1.2 times less risky than GreenTech Environmental. It trades about 0.09 of its potential returns per unit of risk. GreenTech Environmental Co is currently generating about 0.07 per unit of risk. If you would invest 392.00 in Hunan Investment Group on October 18, 2024 and sell it today you would earn a total of 120.00 from holding Hunan Investment Group or generate 30.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Investment Group vs. GreenTech Environmental Co
Performance |
| Timeline |
| Hunan Investment |
| GreenTech Environmental |
Hunan Investment and GreenTech Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Investment and GreenTech Environmental
The main advantage of trading using opposite Hunan Investment and GreenTech Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Investment position performs unexpectedly, GreenTech Environmental 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 GreenTech Environmental will offset losses from the drop in GreenTech Environmental's long position.| Hunan Investment vs. Harvest Fund Management | Hunan Investment vs. CICC Fund Management | Hunan Investment vs. AVIC Fund Management | Hunan Investment vs. Cicc Fund Management |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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