Correlation Between Guangzhou Zhujiang and Hangzhou Gisway
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By analyzing existing cross correlation between Guangzhou Zhujiang Brewery and Hangzhou Gisway Information, you can compare the effects of market volatilities on Guangzhou Zhujiang 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 Guangzhou Zhujiang with a short position of Hangzhou Gisway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Zhujiang and Hangzhou Gisway.
Diversification Opportunities for Guangzhou Zhujiang and Hangzhou Gisway
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Hangzhou is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Zhujiang Brewery 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 Guangzhou Zhujiang 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 Guangzhou Zhujiang Brewery 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 Guangzhou Zhujiang i.e., Guangzhou Zhujiang and Hangzhou Gisway go up and down completely randomly.
Pair Corralation between Guangzhou Zhujiang and Hangzhou Gisway
Assuming the 90 days trading horizon Guangzhou Zhujiang Brewery is expected to generate 0.36 times more return on investment than Hangzhou Gisway. However, Guangzhou Zhujiang Brewery is 2.78 times less risky than Hangzhou Gisway. It trades about -0.13 of its potential returns per unit of risk. Hangzhou Gisway Information is currently generating about -0.16 per unit of risk. If you would invest 959.00 in Guangzhou Zhujiang Brewery on October 23, 2024 and sell it today you would lose (34.00) from holding Guangzhou Zhujiang Brewery or give up 3.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Guangzhou Zhujiang Brewery vs. Hangzhou Gisway Information
Performance |
| Timeline |
| Guangzhou Zhujiang |
| Hangzhou Gisway Info |
Guangzhou Zhujiang and Hangzhou Gisway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Zhujiang and Hangzhou Gisway
The main advantage of trading using opposite Guangzhou Zhujiang and Hangzhou Gisway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Zhujiang 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.| Guangzhou Zhujiang vs. Peoples Insurance of | Guangzhou Zhujiang vs. Ningbo Tech Bank Co | Guangzhou Zhujiang vs. Hunan Investment Group | Guangzhou Zhujiang vs. Zhejiang Construction Investment |
| Hangzhou Gisway vs. Duzhe Publishing Media | Hangzhou Gisway vs. JiShi Media Co | Hangzhou Gisway vs. Shuhua Sports Co | Hangzhou Gisway vs. Changjiang Publishing Media |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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