Correlation Between Guangzhou Zhujiang and Hangzhou Arcvideo
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By analyzing existing cross correlation between Guangzhou Zhujiang Brewery and Hangzhou Arcvideo Technology, you can compare the effects of market volatilities on Guangzhou Zhujiang and Hangzhou Arcvideo 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 Arcvideo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Zhujiang and Hangzhou Arcvideo.
Diversification Opportunities for Guangzhou Zhujiang and Hangzhou Arcvideo
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangzhou and Hangzhou is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Zhujiang Brewery and Hangzhou Arcvideo Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Arcvideo 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 Arcvideo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Arcvideo has no effect on the direction of Guangzhou Zhujiang i.e., Guangzhou Zhujiang and Hangzhou Arcvideo go up and down completely randomly.
Pair Corralation between Guangzhou Zhujiang and Hangzhou Arcvideo
Assuming the 90 days trading horizon Guangzhou Zhujiang Brewery is expected to generate 0.34 times more return on investment than Hangzhou Arcvideo. However, Guangzhou Zhujiang Brewery is 2.93 times less risky than Hangzhou Arcvideo. It trades about 0.01 of its potential returns per unit of risk. Hangzhou Arcvideo Technology is currently generating about -0.03 per unit of risk. If you would invest 914.00 in Guangzhou Zhujiang Brewery on October 30, 2024 and sell it today you would lose (1.00) from holding Guangzhou Zhujiang Brewery or give up 0.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Zhujiang Brewery vs. Hangzhou Arcvideo Technology
Performance |
| Timeline |
| Guangzhou Zhujiang |
| Hangzhou Arcvideo |
Guangzhou Zhujiang and Hangzhou Arcvideo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Zhujiang and Hangzhou Arcvideo
The main advantage of trading using opposite Guangzhou Zhujiang and Hangzhou Arcvideo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Zhujiang position performs unexpectedly, Hangzhou Arcvideo 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 Arcvideo will offset losses from the drop in Hangzhou Arcvideo's long position.| Guangzhou Zhujiang vs. Guilin Seamild Foods | Guangzhou Zhujiang vs. XinJiang GuoTong Pipeline | Guangzhou Zhujiang vs. Shanghai Jinfeng Wine | Guangzhou Zhujiang vs. HaiXin Foods Co |
| Hangzhou Arcvideo vs. Industrial and Commercial | Hangzhou Arcvideo vs. Agricultural Bank of | Hangzhou Arcvideo vs. China Construction Bank | Hangzhou Arcvideo vs. Bank of China |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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