Correlation Between City Development and Hangzhou Gisway
Specify exactly 2 symbols:
By analyzing existing cross correlation between City Development Environment and Hangzhou Gisway Information, you can compare the effects of market volatilities on City Development and Hangzhou Gisway 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 City Development with a short position of Hangzhou Gisway. Check out your portfolio center. Please also check ongoing floating volatility patterns of City Development and Hangzhou Gisway.
Diversification Opportunities for City Development and Hangzhou Gisway
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between City and Hangzhou is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding City Development Environment and Hangzhou Gisway Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Gisway Info and City Development 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 City Development Environment are associated (or correlated) with Hangzhou Gisway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Gisway Info has no effect on the direction of City Development i.e., City Development and Hangzhou Gisway go up and down completely randomly.
Pair Corralation between City Development and Hangzhou Gisway
Assuming the 90 days trading horizon City Development Environment is expected to under-perform the Hangzhou Gisway. But the stock apears to be less risky and, when comparing its historical volatility, City Development Environment is 1.1 times less risky than Hangzhou Gisway. The stock trades about -0.02 of its potential returns per unit of risk. The Hangzhou Gisway Information is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3,310 in Hangzhou Gisway Information on September 13, 2024 and sell it today you would earn a total of 70.00 from holding Hangzhou Gisway Information or generate 2.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
City Development Environment vs. Hangzhou Gisway Information
Performance |
| Timeline |
| City Development Env |
| Hangzhou Gisway Info |
City Development and Hangzhou Gisway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City Development and Hangzhou Gisway
The main advantage of trading using opposite City Development and Hangzhou Gisway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City Development position performs unexpectedly, Hangzhou Gisway 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 Gisway will offset losses from the drop in Hangzhou Gisway's long position.| City Development vs. Zijin Mining Group | City Development vs. Wanhua Chemical Group | City Development vs. Baoshan Iron Steel | City Development vs. Shandong Gold Mining |
| Hangzhou Gisway vs. China Petroleum Chemical | Hangzhou Gisway vs. PetroChina Co Ltd | Hangzhou Gisway vs. China State Construction | Hangzhou Gisway vs. China Railway Group |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |