Correlation Between Guangdong Shenglu and Hangzhou EZVIZ
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Hangzhou EZVIZ Network, you can compare the effects of market volatilities on Guangdong Shenglu 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 Guangdong Shenglu with a short position of Hangzhou EZVIZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Hangzhou EZVIZ.
Diversification Opportunities for Guangdong Shenglu and Hangzhou EZVIZ
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Hangzhou is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic 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 Guangdong Shenglu 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 Guangdong Shenglu Telecommunication 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 Guangdong Shenglu i.e., Guangdong Shenglu and Hangzhou EZVIZ go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Hangzhou EZVIZ
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to generate 1.46 times more return on investment than Hangzhou EZVIZ. However, Guangdong Shenglu is 1.46 times more volatile than Hangzhou EZVIZ Network. It trades about -0.07 of its potential returns per unit of risk. Hangzhou EZVIZ Network is currently generating about -0.1 per unit of risk. If you would invest 722.00 in Guangdong Shenglu Telecommunication on September 29, 2024 and sell it today you would lose (30.00) from holding Guangdong Shenglu Telecommunication or give up 4.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Hangzhou EZVIZ Network
Performance |
| Timeline |
| Guangdong Shenglu |
| Hangzhou EZVIZ Network |
Guangdong Shenglu and Hangzhou EZVIZ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Hangzhou EZVIZ
The main advantage of trading using opposite Guangdong Shenglu and Hangzhou EZVIZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu 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.| Guangdong Shenglu vs. Industrial and Commercial | Guangdong Shenglu vs. Agricultural Bank of | Guangdong Shenglu vs. China Construction Bank | Guangdong Shenglu vs. Bank of China |
| Hangzhou EZVIZ vs. Gansu Yasheng Industrial | Hangzhou EZVIZ vs. Guangzhou Haige Communications | Hangzhou EZVIZ vs. Guangdong Shenglu Telecommunication | Hangzhou EZVIZ vs. Bank of Communications |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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