Correlation Between GRG Banking and Hengli Industrial
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By analyzing existing cross correlation between GRG Banking Equipment and Hengli Industrial Development, you can compare the effects of market volatilities on GRG Banking and Hengli Industrial 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 GRG Banking with a short position of Hengli Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRG Banking and Hengli Industrial.
Diversification Opportunities for GRG Banking and Hengli Industrial
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GRG and Hengli is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding GRG Banking Equipment and Hengli Industrial Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengli Industrial and GRG Banking 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 GRG Banking Equipment are associated (or correlated) with Hengli Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengli Industrial has no effect on the direction of GRG Banking i.e., GRG Banking and Hengli Industrial go up and down completely randomly.
Pair Corralation between GRG Banking and Hengli Industrial
Assuming the 90 days trading horizon GRG Banking Equipment is expected to generate 0.66 times more return on investment than Hengli Industrial. However, GRG Banking Equipment is 1.51 times less risky than Hengli Industrial. It trades about -0.01 of its potential returns per unit of risk. Hengli Industrial Development is currently generating about -0.03 per unit of risk. If you would invest 1,178 in GRG Banking Equipment on October 12, 2024 and sell it today you would lose (96.00) from holding GRG Banking Equipment or give up 8.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRG Banking Equipment vs. Hengli Industrial Development
Performance |
| Timeline |
| GRG Banking Equipment |
| Hengli Industrial |
GRG Banking and Hengli Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRG Banking and Hengli Industrial
The main advantage of trading using opposite GRG Banking and Hengli Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRG Banking position performs unexpectedly, Hengli Industrial 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 Hengli Industrial will offset losses from the drop in Hengli Industrial's long position.| GRG Banking vs. Zhejiang Yongjin Metal | GRG Banking vs. Shandong Hongchuang Aluminum | GRG Banking vs. Eyebright Medical Technology | GRG Banking vs. CITIC Metal Co |
| Hengli Industrial vs. Tsingtao Brewery Co | Hengli Industrial vs. Dawning Information Industry | Hengli Industrial vs. Wuhan Yangtze Communication | Hengli Industrial vs. Unisplendour Corp |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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