Correlation Between Gansu Huangtai and Hunan Investment
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By analyzing existing cross correlation between Gansu Huangtai Wine marketing and Hunan Investment Group, you can compare the effects of market volatilities on Gansu Huangtai and Hunan Investment 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 Gansu Huangtai with a short position of Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Huangtai and Hunan Investment.
Diversification Opportunities for Gansu Huangtai and Hunan Investment
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gansu and Hunan is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Huangtai Wine marketing and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment and Gansu Huangtai 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 Gansu Huangtai Wine marketing are associated (or correlated) with Hunan Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Investment has no effect on the direction of Gansu Huangtai i.e., Gansu Huangtai and Hunan Investment go up and down completely randomly.
Pair Corralation between Gansu Huangtai and Hunan Investment
Assuming the 90 days trading horizon Gansu Huangtai is expected to generate 1.03 times less return on investment than Hunan Investment. In addition to that, Gansu Huangtai is 1.49 times more volatile than Hunan Investment Group. It trades about 0.05 of its total potential returns per unit of risk. Hunan Investment Group is currently generating about 0.08 per unit of volatility. If you would invest 410.00 in Hunan Investment Group on September 1, 2024 and sell it today you would earn a total of 159.00 from holding Hunan Investment Group or generate 38.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Huangtai Wine marketing vs. Hunan Investment Group
Performance |
| Timeline |
| Gansu Huangtai Wine |
| Hunan Investment |
Gansu Huangtai and Hunan Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Huangtai and Hunan Investment
The main advantage of trading using opposite Gansu Huangtai and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Huangtai position performs unexpectedly, Hunan Investment 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 Hunan Investment will offset losses from the drop in Hunan Investment's long position.| Gansu Huangtai vs. Shandong Polymer Biochemicals | Gansu Huangtai vs. Ningxia Younglight Chemicals | Gansu Huangtai vs. Huatian Hotel Group | Gansu Huangtai vs. Xiandai Investment Co |
| Hunan Investment vs. Jiangsu Phoenix Publishing | Hunan Investment vs. Union Semiconductor Co | Hunan Investment vs. China Publishing Media | Hunan Investment vs. GigaDevice SemiconductorBeiji |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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