Correlation Between Aba Chemicals and Hangzhou Xili
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By analyzing existing cross correlation between Aba Chemicals Corp and Hangzhou Xili Intelligent, you can compare the effects of market volatilities on Aba Chemicals and Hangzhou Xili 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 Xili. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aba Chemicals and Hangzhou Xili.
Diversification Opportunities for Aba Chemicals and Hangzhou Xili
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aba and Hangzhou is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Aba Chemicals Corp and Hangzhou Xili Intelligent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Xili Intelligent 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 Xili. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Xili Intelligent has no effect on the direction of Aba Chemicals i.e., Aba Chemicals and Hangzhou Xili go up and down completely randomly.
Pair Corralation between Aba Chemicals and Hangzhou Xili
Assuming the 90 days trading horizon Aba Chemicals Corp is expected to under-perform the Hangzhou Xili. In addition to that, Aba Chemicals is 1.18 times more volatile than Hangzhou Xili Intelligent. It trades about -0.17 of its total potential returns per unit of risk. Hangzhou Xili Intelligent is currently generating about 0.12 per unit of volatility. If you would invest 1,020 in Hangzhou Xili Intelligent on November 3, 2024 and sell it today you would earn a total of 42.00 from holding Hangzhou Xili Intelligent or generate 4.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aba Chemicals Corp vs. Hangzhou Xili Intelligent
Performance |
| Timeline |
| Aba Chemicals Corp |
| Hangzhou Xili Intelligent |
Aba Chemicals and Hangzhou Xili Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aba Chemicals and Hangzhou Xili
The main advantage of trading using opposite Aba Chemicals and Hangzhou Xili positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aba Chemicals position performs unexpectedly, Hangzhou Xili 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 Xili will offset losses from the drop in Hangzhou Xili's long position.| Aba Chemicals vs. Shenzhen AV Display Co | Aba Chemicals vs. Sportsoul Co Ltd | Aba Chemicals vs. Glodon Software Co | Aba Chemicals vs. Lander Sports Development |
| Hangzhou Xili vs. Wuxi Double Elephant | Hangzhou Xili vs. Western Metal Materials | Hangzhou Xili vs. Jahen Household Products | Hangzhou Xili vs. Zhangjiagang Freetrade Science |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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