Correlation Between Hangzhou Gaoxin and Ningbo GQY
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By analyzing existing cross correlation between Hangzhou Gaoxin Rubber and Ningbo GQY Video, you can compare the effects of market volatilities on Hangzhou Gaoxin and Ningbo GQY 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 Ningbo GQY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Gaoxin and Ningbo GQY.
Diversification Opportunities for Hangzhou Gaoxin and Ningbo GQY
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hangzhou and Ningbo is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Gaoxin Rubber and Ningbo GQY Video in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo GQY Video 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 Ningbo GQY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo GQY Video has no effect on the direction of Hangzhou Gaoxin i.e., Hangzhou Gaoxin and Ningbo GQY go up and down completely randomly.
Pair Corralation between Hangzhou Gaoxin and Ningbo GQY
Assuming the 90 days trading horizon Hangzhou Gaoxin is expected to generate 1.18 times less return on investment than Ningbo GQY. But when comparing it to its historical volatility, Hangzhou Gaoxin Rubber is 1.77 times less risky than Ningbo GQY. It trades about 0.14 of its potential returns per unit of risk. Ningbo GQY Video is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 648.00 in Ningbo GQY Video on August 30, 2024 and sell it today you would earn a total of 55.00 from holding Ningbo GQY Video or generate 8.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Gaoxin Rubber vs. Ningbo GQY Video
Performance |
| Timeline |
| Hangzhou Gaoxin Rubber |
| Ningbo GQY Video |
Hangzhou Gaoxin and Ningbo GQY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Gaoxin and Ningbo GQY
The main advantage of trading using opposite Hangzhou Gaoxin and Ningbo GQY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Gaoxin position performs unexpectedly, Ningbo GQY 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 Ningbo GQY will offset losses from the drop in Ningbo GQY's long position.| Hangzhou Gaoxin vs. Zijin Mining Group | Hangzhou Gaoxin vs. Wanhua Chemical Group | Hangzhou Gaoxin vs. Baoshan Iron Steel | Hangzhou Gaoxin vs. Shandong Gold Mining |
| Ningbo GQY vs. Cultural Investment Holdings | Ningbo GQY vs. Gome Telecom Equipment | Ningbo GQY vs. Bus Online Co | Ningbo GQY vs. Holitech Technology Co |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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