Correlation Between Aba Chemicals and Hangzhou Pinming
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By analyzing existing cross correlation between Aba Chemicals Corp and Hangzhou Pinming Software, you can compare the effects of market volatilities on Aba Chemicals and Hangzhou Pinming 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 Pinming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aba Chemicals and Hangzhou Pinming.
Diversification Opportunities for Aba Chemicals and Hangzhou Pinming
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aba and Hangzhou is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Aba Chemicals Corp and Hangzhou Pinming Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Pinming Software 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 Pinming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Pinming Software has no effect on the direction of Aba Chemicals i.e., Aba Chemicals and Hangzhou Pinming go up and down completely randomly.
Pair Corralation between Aba Chemicals and Hangzhou Pinming
Assuming the 90 days trading horizon Aba Chemicals is expected to generate 2.36 times less return on investment than Hangzhou Pinming. In addition to that, Aba Chemicals is 1.07 times more volatile than Hangzhou Pinming Software. It trades about 0.01 of its total potential returns per unit of risk. Hangzhou Pinming Software is currently generating about 0.03 per unit of volatility. If you would invest 2,495 in Hangzhou Pinming Software on September 12, 2024 and sell it today you would earn a total of 366.00 from holding Hangzhou Pinming Software or generate 14.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aba Chemicals Corp vs. Hangzhou Pinming Software
Performance |
| Timeline |
| Aba Chemicals Corp |
| Hangzhou Pinming Software |
Aba Chemicals and Hangzhou Pinming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aba Chemicals and Hangzhou Pinming
The main advantage of trading using opposite Aba Chemicals and Hangzhou Pinming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aba Chemicals position performs unexpectedly, Hangzhou Pinming 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 Pinming will offset losses from the drop in Hangzhou Pinming'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 Pinming vs. Gansu Jiu Steel | Hangzhou Pinming vs. Shandong Mining Machinery | Hangzhou Pinming vs. Aba Chemicals Corp | Hangzhou Pinming 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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