Correlation Between Hangzhou Gaoxin and Shengtak New
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By analyzing existing cross correlation between Hangzhou Gaoxin Rubber and Shengtak New Material, you can compare the effects of market volatilities on Hangzhou Gaoxin and Shengtak New 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 Shengtak New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Gaoxin and Shengtak New.
Diversification Opportunities for Hangzhou Gaoxin and Shengtak New
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hangzhou and Shengtak is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Gaoxin Rubber and Shengtak New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengtak New Material 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 Shengtak New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengtak New Material has no effect on the direction of Hangzhou Gaoxin i.e., Hangzhou Gaoxin and Shengtak New go up and down completely randomly.
Pair Corralation between Hangzhou Gaoxin and Shengtak New
Assuming the 90 days trading horizon Hangzhou Gaoxin Rubber is expected to generate 0.97 times more return on investment than Shengtak New. However, Hangzhou Gaoxin Rubber is 1.03 times less risky than Shengtak New. It trades about 0.01 of its potential returns per unit of risk. Shengtak New Material is currently generating about 0.01 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Gaoxin Rubber vs. Shengtak New Material
Performance |
| Timeline |
| Hangzhou Gaoxin Rubber |
| Shengtak New Material |
Hangzhou Gaoxin and Shengtak New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Gaoxin and Shengtak New
The main advantage of trading using opposite Hangzhou Gaoxin and Shengtak New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Gaoxin position performs unexpectedly, Shengtak New 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 Shengtak New will offset losses from the drop in Shengtak New'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 |
| Shengtak New vs. Hangzhou Gaoxin Rubber | Shengtak New vs. Shanghai Phichem Material | Shengtak New vs. Orinko Advanced Plastics | Shengtak New vs. Jilin OLED Material |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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