Correlation Between Songz Automobile and Hangzhou Gisway
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By analyzing existing cross correlation between Songz Automobile Air and Hangzhou Gisway Information, you can compare the effects of market volatilities on Songz Automobile and Hangzhou Gisway 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 Songz Automobile with a short position of Hangzhou Gisway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Songz Automobile and Hangzhou Gisway.
Diversification Opportunities for Songz Automobile and Hangzhou Gisway
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Songz and Hangzhou is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Songz Automobile Air and Hangzhou Gisway Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Gisway Info and Songz Automobile 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 Songz Automobile Air are associated (or correlated) with Hangzhou Gisway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Gisway Info has no effect on the direction of Songz Automobile i.e., Songz Automobile and Hangzhou Gisway go up and down completely randomly.
Pair Corralation between Songz Automobile and Hangzhou Gisway
Assuming the 90 days trading horizon Songz Automobile is expected to generate 1.62 times less return on investment than Hangzhou Gisway. But when comparing it to its historical volatility, Songz Automobile Air is 1.1 times less risky than Hangzhou Gisway. It trades about 0.04 of its potential returns per unit of risk. Hangzhou Gisway Information is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,143 in Hangzhou Gisway Information on September 1, 2024 and sell it today you would earn a total of 91.00 from holding Hangzhou Gisway Information or generate 2.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Songz Automobile Air vs. Hangzhou Gisway Information
Performance |
| Timeline |
| Songz Automobile Air |
| Hangzhou Gisway Info |
Songz Automobile and Hangzhou Gisway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Songz Automobile and Hangzhou Gisway
The main advantage of trading using opposite Songz Automobile and Hangzhou Gisway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Songz Automobile position performs unexpectedly, Hangzhou Gisway 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 Gisway will offset losses from the drop in Hangzhou Gisway's long position.| Songz Automobile vs. BYD Co Ltd | Songz Automobile vs. China Mobile Limited | Songz Automobile vs. Agricultural Bank of | Songz Automobile vs. Industrial and Commercial |
| Hangzhou Gisway vs. China Petroleum Chemical | Hangzhou Gisway vs. PetroChina Co Ltd | Hangzhou Gisway vs. China State Construction | Hangzhou Gisway vs. China Railway Group |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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