Correlation Between Sichuan Yahua and Hangzhou Gisway
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By analyzing existing cross correlation between Sichuan Yahua Industrial and Hangzhou Gisway Information, you can compare the effects of market volatilities on Sichuan Yahua 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 Sichuan Yahua with a short position of Hangzhou Gisway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Yahua and Hangzhou Gisway.
Diversification Opportunities for Sichuan Yahua and Hangzhou Gisway
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sichuan and Hangzhou is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Yahua Industrial 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 Sichuan Yahua 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 Sichuan Yahua Industrial 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 Sichuan Yahua i.e., Sichuan Yahua and Hangzhou Gisway go up and down completely randomly.
Pair Corralation between Sichuan Yahua and Hangzhou Gisway
Assuming the 90 days trading horizon Sichuan Yahua Industrial is expected to generate 1.1 times more return on investment than Hangzhou Gisway. However, Sichuan Yahua is 1.1 times more volatile than Hangzhou Gisway Information. It trades about 0.14 of its potential returns per unit of risk. Hangzhou Gisway Information is currently generating about 0.08 per unit of risk. If you would invest 1,185 in Sichuan Yahua Industrial on September 12, 2024 and sell it today you would earn a total of 97.00 from holding Sichuan Yahua Industrial or generate 8.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Yahua Industrial vs. Hangzhou Gisway Information
Performance |
| Timeline |
| Sichuan Yahua Industrial |
| Hangzhou Gisway Info |
Sichuan Yahua and Hangzhou Gisway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Yahua and Hangzhou Gisway
The main advantage of trading using opposite Sichuan Yahua and Hangzhou Gisway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Yahua 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.| Sichuan Yahua vs. Zijin Mining Group | Sichuan Yahua vs. Wanhua Chemical Group | Sichuan Yahua vs. Baoshan Iron Steel | Sichuan Yahua vs. Rongsheng Petrochemical Co |
| Hangzhou Gisway vs. Gansu Jiu Steel | Hangzhou Gisway vs. Shandong Mining Machinery | Hangzhou Gisway vs. Aba Chemicals Corp | Hangzhou Gisway vs. BlueFocus Communication 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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