Correlation Between Hangzhou Weiguang and Sichuan Jinshi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hangzhou Weiguang Electronic and Sichuan Jinshi Technology, you can compare the effects of market volatilities on Hangzhou Weiguang and Sichuan Jinshi 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 Hangzhou Weiguang with a short position of Sichuan Jinshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Weiguang and Sichuan Jinshi.
Diversification Opportunities for Hangzhou Weiguang and Sichuan Jinshi
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hangzhou and Sichuan is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Weiguang Electronic and Sichuan Jinshi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Jinshi Technology and Hangzhou Weiguang 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 Hangzhou Weiguang Electronic are associated (or correlated) with Sichuan Jinshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Jinshi Technology has no effect on the direction of Hangzhou Weiguang i.e., Hangzhou Weiguang and Sichuan Jinshi go up and down completely randomly.
Pair Corralation between Hangzhou Weiguang and Sichuan Jinshi
Assuming the 90 days trading horizon Hangzhou Weiguang Electronic is expected to generate 1.09 times more return on investment than Sichuan Jinshi. However, Hangzhou Weiguang is 1.09 times more volatile than Sichuan Jinshi Technology. It trades about 0.2 of its potential returns per unit of risk. Sichuan Jinshi Technology is currently generating about 0.2 per unit of risk. If you would invest 1,731 in Hangzhou Weiguang Electronic on September 2, 2024 and sell it today you would earn a total of 705.00 from holding Hangzhou Weiguang Electronic or generate 40.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Weiguang Electronic vs. Sichuan Jinshi Technology
Performance |
| Timeline |
| Hangzhou Weiguang |
| Sichuan Jinshi Technology |
Hangzhou Weiguang and Sichuan Jinshi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Weiguang and Sichuan Jinshi
The main advantage of trading using opposite Hangzhou Weiguang and Sichuan Jinshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Weiguang position performs unexpectedly, Sichuan Jinshi 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 Sichuan Jinshi will offset losses from the drop in Sichuan Jinshi's long position.| Hangzhou Weiguang vs. Shaanxi Broadcast TV | Hangzhou Weiguang vs. Zhongshan Broad Ocean Motor | Hangzhou Weiguang vs. Shanghai Metersbonwe FashionAccessories | Hangzhou Weiguang vs. Yindu Kitchen Equipment |
| Sichuan Jinshi vs. Zijin Mining Group | Sichuan Jinshi vs. Wanhua Chemical Group | Sichuan Jinshi vs. Baoshan Iron Steel | Sichuan Jinshi vs. Shandong Gold Mining |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |