Correlation Between HanS Laser and Changzhou Evergreen
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By analyzing existing cross correlation between HanS Laser Tech and Changzhou Evergreen Technology, you can compare the effects of market volatilities on HanS Laser and Changzhou Evergreen 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 HanS Laser with a short position of Changzhou Evergreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of HanS Laser and Changzhou Evergreen.
Diversification Opportunities for HanS Laser and Changzhou Evergreen
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between HanS and Changzhou is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding HanS Laser Tech and Changzhou Evergreen Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changzhou Evergreen and HanS Laser 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 HanS Laser Tech are associated (or correlated) with Changzhou Evergreen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changzhou Evergreen has no effect on the direction of HanS Laser i.e., HanS Laser and Changzhou Evergreen go up and down completely randomly.
Pair Corralation between HanS Laser and Changzhou Evergreen
Assuming the 90 days trading horizon HanS Laser is expected to generate 1.54 times less return on investment than Changzhou Evergreen. But when comparing it to its historical volatility, HanS Laser Tech is 1.6 times less risky than Changzhou Evergreen. It trades about 0.02 of its potential returns per unit of risk. Changzhou Evergreen Technology is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,861 in Changzhou Evergreen Technology on August 26, 2024 and sell it today you would lose (57.00) from holding Changzhou Evergreen Technology or give up 3.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 97.37% |
| Values | Daily Returns |
HanS Laser Tech vs. Changzhou Evergreen Technology
Performance |
| Timeline |
| HanS Laser Tech |
| Changzhou Evergreen |
HanS Laser and Changzhou Evergreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HanS Laser and Changzhou Evergreen
The main advantage of trading using opposite HanS Laser and Changzhou Evergreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HanS Laser position performs unexpectedly, Changzhou Evergreen 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 Changzhou Evergreen will offset losses from the drop in Changzhou Evergreen's long position.| HanS Laser vs. Biwin Storage Technology | HanS Laser vs. PetroChina Co Ltd | HanS Laser vs. Industrial and Commercial | HanS Laser vs. China Construction Bank |
| Changzhou Evergreen vs. Cambricon Technologies Corp | Changzhou Evergreen vs. Loongson Technology Corp | Changzhou Evergreen vs. Chongqing Road Bridge | Changzhou Evergreen vs. Shenzhen Fortune Trend |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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