Correlation Between Hangzhou Gaoxin and Aba Chemicals
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By analyzing existing cross correlation between Hangzhou Gaoxin Rubber and Aba Chemicals Corp, you can compare the effects of market volatilities on Hangzhou Gaoxin and Aba Chemicals 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 Aba Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Gaoxin and Aba Chemicals.
Diversification Opportunities for Hangzhou Gaoxin and Aba Chemicals
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hangzhou and Aba is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Gaoxin Rubber and Aba Chemicals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aba Chemicals Corp 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 Aba Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aba Chemicals Corp has no effect on the direction of Hangzhou Gaoxin i.e., Hangzhou Gaoxin and Aba Chemicals go up and down completely randomly.
Pair Corralation between Hangzhou Gaoxin and Aba Chemicals
Assuming the 90 days trading horizon Hangzhou Gaoxin Rubber is expected to generate 1.03 times more return on investment than Aba Chemicals. However, Hangzhou Gaoxin is 1.03 times more volatile than Aba Chemicals Corp. It trades about 0.01 of its potential returns per unit of risk. Aba Chemicals Corp is currently generating about 0.01 per unit of risk. If you would invest 1,056 in Hangzhou Gaoxin Rubber on October 16, 2024 and sell it today you would lose (145.00) from holding Hangzhou Gaoxin Rubber or give up 13.73% 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. Aba Chemicals Corp
Performance |
| Timeline |
| Hangzhou Gaoxin Rubber |
| Aba Chemicals Corp |
Hangzhou Gaoxin and Aba Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Gaoxin and Aba Chemicals
The main advantage of trading using opposite Hangzhou Gaoxin and Aba Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Gaoxin position performs unexpectedly, Aba Chemicals 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 Aba Chemicals will offset losses from the drop in Aba Chemicals' long position.| Hangzhou Gaoxin vs. China Mobile Limited | Hangzhou Gaoxin vs. Sanbo Hospital Management | Hangzhou Gaoxin vs. Anhui Jianghuai Automobile | Hangzhou Gaoxin vs. Youngy Health Co |
| Aba Chemicals vs. Sportsoul Co Ltd | Aba Chemicals vs. Beijing Enlight Media | Aba Chemicals vs. King Strong New Material | Aba Chemicals vs. Hangzhou Gaoxin Rubber |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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