Correlation Between Huagong Tech and Hangzhou EZVIZ

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Huagong Tech and Hangzhou EZVIZ at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Huagong Tech and Hangzhou EZVIZ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Huagong Tech Co and Hangzhou EZVIZ Network, you can compare the effects of market volatilities on Huagong Tech and Hangzhou EZVIZ 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 Huagong Tech with a short position of Hangzhou EZVIZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huagong Tech and Hangzhou EZVIZ.

Diversification Opportunities for Huagong Tech and Hangzhou EZVIZ

0.69
  Correlation Coefficient

Poor diversification

The 3 months correlation between Huagong and Hangzhou is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Huagong Tech Co and Hangzhou EZVIZ Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou EZVIZ Network and Huagong Tech 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 Huagong Tech Co are associated (or correlated) with Hangzhou EZVIZ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou EZVIZ Network has no effect on the direction of Huagong Tech i.e., Huagong Tech and Hangzhou EZVIZ go up and down completely randomly.

Pair Corralation between Huagong Tech and Hangzhou EZVIZ

Assuming the 90 days trading horizon Huagong Tech Co is expected to generate 0.88 times more return on investment than Hangzhou EZVIZ. However, Huagong Tech Co is 1.14 times less risky than Hangzhou EZVIZ. It trades about 0.1 of its potential returns per unit of risk. Hangzhou EZVIZ Network is currently generating about -0.02 per unit of risk. If you would invest  3,019  in Huagong Tech Co on September 27, 2024 and sell it today you would earn a total of  984.00  from holding Huagong Tech Co or generate 32.59% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Huagong Tech Co  vs.  Hangzhou EZVIZ Network

 Performance 
       Timeline  
Huagong Tech 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Huagong Tech Co are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Huagong Tech sustained solid returns over the last few months and may actually be approaching a breakup point.
Hangzhou EZVIZ Network 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Hangzhou EZVIZ Network are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Hangzhou EZVIZ is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Huagong Tech and Hangzhou EZVIZ Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Huagong Tech and Hangzhou EZVIZ

The main advantage of trading using opposite Huagong Tech and Hangzhou EZVIZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huagong Tech position performs unexpectedly, Hangzhou EZVIZ 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 EZVIZ will offset losses from the drop in Hangzhou EZVIZ's long position.
Huagong Tech vs. Industrial and Commercial
Huagong Tech vs. China Construction Bank
Huagong Tech vs. Agricultural Bank of
Huagong Tech vs. Bank of China
The idea behind Huagong Tech Co and Hangzhou EZVIZ Network pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Hangzhou EZVIZ vs. Hubeiyichang Transportation Group
Hangzhou EZVIZ vs. Hengli Petrochemical Co
Hangzhou EZVIZ vs. Sichuan Fulin Transportation
Hangzhou EZVIZ vs. RoadMain T Co
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

Other Complementary Tools

Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Bonds Directory
Find actively traded corporate debentures issued by US companies
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY