Correlation Between Hangzhou Weiguang and Silkroad Visual
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By analyzing existing cross correlation between Hangzhou Weiguang Electronic and Silkroad Visual Technology, you can compare the effects of market volatilities on Hangzhou Weiguang and Silkroad Visual 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 Silkroad Visual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Weiguang and Silkroad Visual.
Diversification Opportunities for Hangzhou Weiguang and Silkroad Visual
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hangzhou and Silkroad is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Weiguang Electronic and Silkroad Visual Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silkroad Visual Tech 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 Silkroad Visual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silkroad Visual Tech has no effect on the direction of Hangzhou Weiguang i.e., Hangzhou Weiguang and Silkroad Visual go up and down completely randomly.
Pair Corralation between Hangzhou Weiguang and Silkroad Visual
Assuming the 90 days trading horizon Hangzhou Weiguang Electronic is expected to generate 0.76 times more return on investment than Silkroad Visual. However, Hangzhou Weiguang Electronic is 1.32 times less risky than Silkroad Visual. It trades about 0.22 of its potential returns per unit of risk. Silkroad Visual Technology is currently generating about 0.13 per unit of risk. If you would invest 2,133 in Hangzhou Weiguang Electronic on September 1, 2024 and sell it today you would earn a total of 303.00 from holding Hangzhou Weiguang Electronic or generate 14.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hangzhou Weiguang Electronic vs. Silkroad Visual Technology
Performance |
| Timeline |
| Hangzhou Weiguang |
| Silkroad Visual Tech |
Hangzhou Weiguang and Silkroad Visual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Weiguang and Silkroad Visual
The main advantage of trading using opposite Hangzhou Weiguang and Silkroad Visual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Weiguang position performs unexpectedly, Silkroad Visual 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 Silkroad Visual will offset losses from the drop in Silkroad Visual's long position.| Hangzhou Weiguang vs. China Life Insurance | Hangzhou Weiguang vs. Cinda Securities Co | Hangzhou Weiguang vs. Piotech Inc A | Hangzhou Weiguang vs. Dongxing Sec Co |
| Silkroad Visual vs. Cultural Investment Holdings | Silkroad Visual vs. Gome Telecom Equipment | Silkroad Visual vs. Bus Online Co | Silkroad Visual vs. Holitech Technology Co |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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