Correlation Between Guizhou Chanhen and Hunan Investment
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guizhou Chanhen Chemical and Hunan Investment Group, you can compare the effects of market volatilities on Guizhou Chanhen and Hunan Investment 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 Guizhou Chanhen with a short position of Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guizhou Chanhen and Hunan Investment.
Diversification Opportunities for Guizhou Chanhen and Hunan Investment
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guizhou and Hunan is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Guizhou Chanhen Chemical and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment and Guizhou Chanhen 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 Guizhou Chanhen Chemical are associated (or correlated) with Hunan Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Investment has no effect on the direction of Guizhou Chanhen i.e., Guizhou Chanhen and Hunan Investment go up and down completely randomly.
Pair Corralation between Guizhou Chanhen and Hunan Investment
Assuming the 90 days trading horizon Guizhou Chanhen Chemical is expected to under-perform the Hunan Investment. In addition to that, Guizhou Chanhen is 1.03 times more volatile than Hunan Investment Group. It trades about -0.18 of its total potential returns per unit of risk. Hunan Investment Group is currently generating about -0.03 per unit of volatility. If you would invest 527.00 in Hunan Investment Group on October 24, 2024 and sell it today you would lose (9.00) from holding Hunan Investment Group or give up 1.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guizhou Chanhen Chemical vs. Hunan Investment Group
Performance |
| Timeline |
| Guizhou Chanhen Chemical |
| Hunan Investment |
Guizhou Chanhen and Hunan Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guizhou Chanhen and Hunan Investment
The main advantage of trading using opposite Guizhou Chanhen and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guizhou Chanhen position performs unexpectedly, Hunan Investment 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 Hunan Investment will offset losses from the drop in Hunan Investment's long position.| Guizhou Chanhen vs. Ningbo Kangqiang Electronics | Guizhou Chanhen vs. Chengdu Spaceon Electronics | Guizhou Chanhen vs. Shijiazhuang Tonhe Electronics | Guizhou Chanhen vs. China Asset Management |
| Hunan Investment vs. HeBei Jinniu Chemical | Hunan Investment vs. Miracll Chemicals Co | Hunan Investment vs. Guizhou Chanhen Chemical | Hunan Investment vs. Shannon Semiconductor 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |