Correlation Between Soyea Technology and Hangzhou Weiguang
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By analyzing existing cross correlation between Soyea Technology Co and Hangzhou Weiguang Electronic, you can compare the effects of market volatilities on Soyea Technology and Hangzhou Weiguang 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 Soyea Technology with a short position of Hangzhou Weiguang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soyea Technology and Hangzhou Weiguang.
Diversification Opportunities for Soyea Technology and Hangzhou Weiguang
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Soyea and Hangzhou is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Soyea Technology Co and Hangzhou Weiguang Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Weiguang and Soyea Technology 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 Soyea Technology Co are associated (or correlated) with Hangzhou Weiguang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Weiguang has no effect on the direction of Soyea Technology i.e., Soyea Technology and Hangzhou Weiguang go up and down completely randomly.
Pair Corralation between Soyea Technology and Hangzhou Weiguang
Assuming the 90 days trading horizon Soyea Technology Co is expected to under-perform the Hangzhou Weiguang. In addition to that, Soyea Technology is 1.08 times more volatile than Hangzhou Weiguang Electronic. It trades about -0.04 of its total potential returns per unit of risk. Hangzhou Weiguang Electronic is currently generating about 0.01 per unit of volatility. If you would invest 2,782 in Hangzhou Weiguang Electronic on November 2, 2024 and sell it today you would lose (108.00) from holding Hangzhou Weiguang Electronic or give up 3.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Soyea Technology Co vs. Hangzhou Weiguang Electronic
Performance |
| Timeline |
| Soyea Technology |
| Hangzhou Weiguang |
Soyea Technology and Hangzhou Weiguang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soyea Technology and Hangzhou Weiguang
The main advantage of trading using opposite Soyea Technology and Hangzhou Weiguang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soyea Technology position performs unexpectedly, Hangzhou Weiguang 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 Weiguang will offset losses from the drop in Hangzhou Weiguang's long position.| Soyea Technology vs. Beijing Yanjing Brewery | Soyea Technology vs. UCloud Technology Co | Soyea Technology vs. Tianjin Ruixin Technology | Soyea Technology vs. Hubei Forbon Technology |
| Hangzhou Weiguang vs. Eyebright Medical Technology | Hangzhou Weiguang vs. Bonree Data Technology | Hangzhou Weiguang vs. Jinxiandai Information Industry | Hangzhou Weiguang vs. YLZ Information Tech |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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