Correlation Between Hangzhou Weiguang and Industrial
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By analyzing existing cross correlation between Hangzhou Weiguang Electronic and Industrial and Commercial, you can compare the effects of market volatilities on Hangzhou Weiguang and Industrial 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 Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Weiguang and Industrial.
Diversification Opportunities for Hangzhou Weiguang and Industrial
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hangzhou and Industrial is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Weiguang Electronic and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial 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 Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Hangzhou Weiguang i.e., Hangzhou Weiguang and Industrial go up and down completely randomly.
Pair Corralation between Hangzhou Weiguang and Industrial
Assuming the 90 days trading horizon Hangzhou Weiguang Electronic is expected to generate 2.55 times more return on investment than Industrial. However, Hangzhou Weiguang is 2.55 times more volatile than Industrial and Commercial. It trades about 0.11 of its potential returns per unit of risk. Industrial and Commercial is currently generating about -0.05 per unit of risk. If you would invest 2,126 in Hangzhou Weiguang Electronic on August 26, 2024 and sell it today you would earn a total of 110.00 from holding Hangzhou Weiguang Electronic or generate 5.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Weiguang Electronic vs. Industrial and Commercial
Performance |
| Timeline |
| Hangzhou Weiguang |
| Industrial and Commercial |
Hangzhou Weiguang and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Weiguang and Industrial
The main advantage of trading using opposite Hangzhou Weiguang and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Weiguang position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial's long position.| Hangzhou Weiguang vs. Industrial and Commercial | Hangzhou Weiguang vs. China Construction Bank | Hangzhou Weiguang vs. Agricultural Bank of | Hangzhou Weiguang vs. Bank of China |
| Industrial vs. Zhuhai Comleader Information | Industrial vs. Hygon Information Technology | Industrial vs. GigaDevice SemiconductorBeiji | Industrial vs. ZJBC Information Technology |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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