Correlation Between Allwin Telecommunicatio and Hunan Investment
Specify exactly 2 symbols:
By analyzing existing cross correlation between Allwin Telecommunication Co and Hunan Investment Group, you can compare the effects of market volatilities on Allwin Telecommunicatio 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 Allwin Telecommunicatio with a short position of Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allwin Telecommunicatio and Hunan Investment.
Diversification Opportunities for Allwin Telecommunicatio and Hunan Investment
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Allwin and Hunan is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Allwin Telecommunication Co and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment and Allwin Telecommunicatio 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 Allwin Telecommunication Co 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 Allwin Telecommunicatio i.e., Allwin Telecommunicatio and Hunan Investment go up and down completely randomly.
Pair Corralation between Allwin Telecommunicatio and Hunan Investment
Assuming the 90 days trading horizon Allwin Telecommunication Co is expected to under-perform the Hunan Investment. But the stock apears to be less risky and, when comparing its historical volatility, Allwin Telecommunication Co is 1.03 times less risky than Hunan Investment. The stock trades about -0.02 of its potential returns per unit of risk. The Hunan Investment Group is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 506.00 in Hunan Investment Group on September 1, 2024 and sell it today you would earn a total of 63.00 from holding Hunan Investment Group or generate 12.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allwin Telecommunication Co vs. Hunan Investment Group
Performance |
| Timeline |
| Allwin Telecommunicatio |
| Hunan Investment |
Allwin Telecommunicatio and Hunan Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allwin Telecommunicatio and Hunan Investment
The main advantage of trading using opposite Allwin Telecommunicatio and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allwin Telecommunicatio 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.| Allwin Telecommunicatio vs. Industrial and Commercial | Allwin Telecommunicatio vs. Kweichow Moutai Co | Allwin Telecommunicatio vs. Agricultural Bank of | Allwin Telecommunicatio vs. China Mobile Limited |
| 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Stocks Directory Find actively traded stocks across global markets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |