Correlation Between GuoChuang Software and Hunan Investment
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By analyzing existing cross correlation between GuoChuang Software Co and Hunan Investment Group, you can compare the effects of market volatilities on GuoChuang Software and Hunan Investment 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 GuoChuang Software with a short position of Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of GuoChuang Software and Hunan Investment.
Diversification Opportunities for GuoChuang Software and Hunan Investment
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GuoChuang and Hunan is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding GuoChuang Software Co and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment and GuoChuang Software 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 GuoChuang Software Co are associated (or correlated) with Hunan Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Investment has no effect on the direction of GuoChuang Software i.e., GuoChuang Software and Hunan Investment go up and down completely randomly.
Pair Corralation between GuoChuang Software and Hunan Investment
Assuming the 90 days trading horizon GuoChuang Software Co is expected to generate 1.59 times more return on investment than Hunan Investment. However, GuoChuang Software is 1.59 times more volatile than Hunan Investment Group. It trades about 0.02 of its potential returns per unit of risk. Hunan Investment Group is currently generating about 0.0 per unit of risk. If you would invest 2,163 in GuoChuang Software Co on October 16, 2024 and sell it today you would lose (126.00) from holding GuoChuang Software Co or give up 5.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GuoChuang Software Co vs. Hunan Investment Group
Performance |
| Timeline |
| GuoChuang Software |
| Hunan Investment |
GuoChuang Software and Hunan Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GuoChuang Software and Hunan Investment
The main advantage of trading using opposite GuoChuang Software and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GuoChuang Software position performs unexpectedly, Hunan Investment 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 Hunan Investment will offset losses from the drop in Hunan Investment's long position.| GuoChuang Software vs. China Life Insurance | GuoChuang Software vs. Cinda Securities Co | GuoChuang Software vs. Piotech Inc A | GuoChuang Software vs. Dongxing Sec Co |
| Hunan Investment vs. Liaoning Dingjide Petrochemical | Hunan Investment vs. Dosilicon Co | Hunan Investment vs. Postal Savings Bank | Hunan Investment vs. China Asset Management |
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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