Correlation Between Aba Chemicals and Hangzhou Gisway
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By analyzing existing cross correlation between Aba Chemicals Corp and Hangzhou Gisway Information, you can compare the effects of market volatilities on Aba Chemicals and Hangzhou Gisway 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 Aba Chemicals with a short position of Hangzhou Gisway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aba Chemicals and Hangzhou Gisway.
Diversification Opportunities for Aba Chemicals and Hangzhou Gisway
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aba and Hangzhou is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Aba Chemicals Corp and Hangzhou Gisway Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Gisway Info and Aba Chemicals 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 Aba Chemicals Corp are associated (or correlated) with Hangzhou Gisway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Gisway Info has no effect on the direction of Aba Chemicals i.e., Aba Chemicals and Hangzhou Gisway go up and down completely randomly.
Pair Corralation between Aba Chemicals and Hangzhou Gisway
Assuming the 90 days trading horizon Aba Chemicals Corp is expected to generate 1.14 times more return on investment than Hangzhou Gisway. However, Aba Chemicals is 1.14 times more volatile than Hangzhou Gisway Information. It trades about 0.02 of its potential returns per unit of risk. Hangzhou Gisway Information is currently generating about -0.02 per unit of risk. If you would invest 824.00 in Aba Chemicals Corp on September 12, 2024 and sell it today you would lose (10.00) from holding Aba Chemicals Corp or give up 1.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aba Chemicals Corp vs. Hangzhou Gisway Information
Performance |
| Timeline |
| Aba Chemicals Corp |
| Hangzhou Gisway Info |
Aba Chemicals and Hangzhou Gisway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aba Chemicals and Hangzhou Gisway
The main advantage of trading using opposite Aba Chemicals and Hangzhou Gisway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aba Chemicals position performs unexpectedly, Hangzhou Gisway 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 Hangzhou Gisway will offset losses from the drop in Hangzhou Gisway's long position.| Aba Chemicals vs. Semiconductor Manufacturing Electronics | Aba Chemicals vs. GigaDevice SemiconductorBeiji | Aba Chemicals vs. Qinghaihuading Industrial Co | Aba Chemicals vs. MayAir Technology Co |
| Hangzhou Gisway vs. Gansu Jiu Steel | Hangzhou Gisway vs. Shandong Mining Machinery | Hangzhou Gisway vs. Aba Chemicals Corp | Hangzhou Gisway vs. BlueFocus Communication 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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