Correlation Between Hangzhou Weiguang and Beijing E
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By analyzing existing cross correlation between Hangzhou Weiguang Electronic and Beijing E Hualu, you can compare the effects of market volatilities on Hangzhou Weiguang and Beijing E 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 Beijing E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Weiguang and Beijing E.
Diversification Opportunities for Hangzhou Weiguang and Beijing E
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hangzhou and Beijing is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Weiguang Electronic and Beijing E Hualu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing E Hualu 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 Beijing E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing E Hualu has no effect on the direction of Hangzhou Weiguang i.e., Hangzhou Weiguang and Beijing E go up and down completely randomly.
Pair Corralation between Hangzhou Weiguang and Beijing E
Assuming the 90 days trading horizon Hangzhou Weiguang Electronic is expected to generate 0.6 times more return on investment than Beijing E. However, Hangzhou Weiguang Electronic is 1.66 times less risky than Beijing E. It trades about 0.02 of its potential returns per unit of risk. Beijing E Hualu is currently generating about 0.0 per unit of risk. If you would invest 2,287 in Hangzhou Weiguang Electronic on August 31, 2024 and sell it today you would earn a total of 149.00 from holding Hangzhou Weiguang Electronic or generate 6.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Hangzhou Weiguang Electronic vs. Beijing E Hualu
Performance |
| Timeline |
| Hangzhou Weiguang |
| Beijing E Hualu |
Hangzhou Weiguang and Beijing E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Weiguang and Beijing E
The main advantage of trading using opposite Hangzhou Weiguang and Beijing E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Weiguang position performs unexpectedly, Beijing E 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 Beijing E will offset losses from the drop in Beijing E's long position.| Hangzhou Weiguang vs. Yonyou Auto Information | Hangzhou Weiguang vs. Shanghai Material Trading | Hangzhou Weiguang vs. Zoje Resources Investment | Hangzhou Weiguang vs. Invengo Information Technology |
| Beijing E vs. Jinhui Liquor Co | Beijing E vs. Jiugui Liquor Co | Beijing E vs. Kontour Medical Technology | Beijing E vs. Hengkang Medical 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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