Correlation Between Hangzhou Gaoxin and Hubeiyichang Transportation
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By analyzing existing cross correlation between Hangzhou Gaoxin Rubber and Hubeiyichang Transportation Group, you can compare the effects of market volatilities on Hangzhou Gaoxin and Hubeiyichang Transportation 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 Gaoxin with a short position of Hubeiyichang Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Gaoxin and Hubeiyichang Transportation.
Diversification Opportunities for Hangzhou Gaoxin and Hubeiyichang Transportation
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hangzhou and Hubeiyichang is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Gaoxin Rubber and Hubeiyichang Transportation Gr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubeiyichang Transportation and Hangzhou Gaoxin 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 Gaoxin Rubber are associated (or correlated) with Hubeiyichang Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubeiyichang Transportation has no effect on the direction of Hangzhou Gaoxin i.e., Hangzhou Gaoxin and Hubeiyichang Transportation go up and down completely randomly.
Pair Corralation between Hangzhou Gaoxin and Hubeiyichang Transportation
Assuming the 90 days trading horizon Hangzhou Gaoxin Rubber is expected to generate 2.01 times more return on investment than Hubeiyichang Transportation. However, Hangzhou Gaoxin is 2.01 times more volatile than Hubeiyichang Transportation Group. It trades about 0.01 of its potential returns per unit of risk. Hubeiyichang Transportation Group is currently generating about 0.0 per unit of risk. If you would invest 961.00 in Hangzhou Gaoxin Rubber on October 11, 2024 and sell it today you would lose (67.00) from holding Hangzhou Gaoxin Rubber or give up 6.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Gaoxin Rubber vs. Hubeiyichang Transportation Gr
Performance |
| Timeline |
| Hangzhou Gaoxin Rubber |
| Hubeiyichang Transportation |
Hangzhou Gaoxin and Hubeiyichang Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Gaoxin and Hubeiyichang Transportation
The main advantage of trading using opposite Hangzhou Gaoxin and Hubeiyichang Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Gaoxin position performs unexpectedly, Hubeiyichang Transportation 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 Hubeiyichang Transportation will offset losses from the drop in Hubeiyichang Transportation's long position.| Hangzhou Gaoxin vs. Guangzhou KingTeller Technology | Hangzhou Gaoxin vs. Jinhe Biotechnology Co | Hangzhou Gaoxin vs. XiaMen HongXin Electron tech | Hangzhou Gaoxin vs. Kuangda Technology 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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