Correlation Between Hangzhou Gaoxin and V V
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By analyzing existing cross correlation between Hangzhou Gaoxin Rubber and V V Food, you can compare the effects of market volatilities on Hangzhou Gaoxin and V V 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 V V. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Gaoxin and V V.
Diversification Opportunities for Hangzhou Gaoxin and V V
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hangzhou and 600300 is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Gaoxin Rubber and V V Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on V V Food 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 V V. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of V V Food has no effect on the direction of Hangzhou Gaoxin i.e., Hangzhou Gaoxin and V V go up and down completely randomly.
Pair Corralation between Hangzhou Gaoxin and V V
Assuming the 90 days trading horizon Hangzhou Gaoxin Rubber is expected to generate 1.37 times more return on investment than V V. However, Hangzhou Gaoxin is 1.37 times more volatile than V V Food. It trades about -0.14 of its potential returns per unit of risk. V V Food is currently generating about -0.27 per unit of risk. If you would invest 1,011 in Hangzhou Gaoxin Rubber on October 18, 2024 and sell it today you would lose (117.00) from holding Hangzhou Gaoxin Rubber or give up 11.57% 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. V V Food
Performance |
| Timeline |
| Hangzhou Gaoxin Rubber |
| V V Food |
Hangzhou Gaoxin and V V Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Gaoxin and V V
The main advantage of trading using opposite Hangzhou Gaoxin and V V positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Gaoxin position performs unexpectedly, V V 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 V V will offset losses from the drop in V V's long position.| Hangzhou Gaoxin vs. China Aluminum International | Hangzhou Gaoxin vs. Pengxin International Mining | Hangzhou Gaoxin vs. Guangdong Jingyi Metal | Hangzhou Gaoxin vs. Ningbo Jintian Copper |
| V V vs. Ping An Insurance | V V vs. Shenyang Huitian Thermal | V V vs. Hangzhou Gaoxin Rubber | V V vs. Ningbo Tip 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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