Correlation Between Silkroad Visual and Hangzhou Weiguang
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By analyzing existing cross correlation between Silkroad Visual Technology and Hangzhou Weiguang Electronic, you can compare the effects of market volatilities on Silkroad Visual and Hangzhou Weiguang 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 Silkroad Visual with a short position of Hangzhou Weiguang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silkroad Visual and Hangzhou Weiguang.
Diversification Opportunities for Silkroad Visual and Hangzhou Weiguang
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Silkroad and Hangzhou is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Silkroad Visual Technology and Hangzhou Weiguang Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Weiguang and Silkroad Visual 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 Silkroad Visual Technology are associated (or correlated) with Hangzhou Weiguang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Weiguang has no effect on the direction of Silkroad Visual i.e., Silkroad Visual and Hangzhou Weiguang go up and down completely randomly.
Pair Corralation between Silkroad Visual and Hangzhou Weiguang
Assuming the 90 days trading horizon Silkroad Visual is expected to generate 16.19 times less return on investment than Hangzhou Weiguang. In addition to that, Silkroad Visual is 1.47 times more volatile than Hangzhou Weiguang Electronic. It trades about 0.0 of its total potential returns per unit of risk. Hangzhou Weiguang Electronic is currently generating about 0.1 per unit of volatility. If you would invest 2,131 in Hangzhou Weiguang Electronic on August 29, 2024 and sell it today you would earn a total of 103.00 from holding Hangzhou Weiguang Electronic or generate 4.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silkroad Visual Technology vs. Hangzhou Weiguang Electronic
Performance |
| Timeline |
| Silkroad Visual Tech |
| Hangzhou Weiguang |
Silkroad Visual and Hangzhou Weiguang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silkroad Visual and Hangzhou Weiguang
The main advantage of trading using opposite Silkroad Visual and Hangzhou Weiguang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silkroad Visual position performs unexpectedly, Hangzhou Weiguang 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 Hangzhou Weiguang will offset losses from the drop in Hangzhou Weiguang's long position.| Silkroad Visual vs. Industrial and Commercial | Silkroad Visual vs. Kweichow Moutai Co | Silkroad Visual vs. Agricultural Bank of | Silkroad Visual vs. China Mobile Limited |
| Hangzhou Weiguang vs. Industrial and Commercial | Hangzhou Weiguang vs. China Construction Bank | Hangzhou Weiguang vs. Agricultural Bank of | Hangzhou Weiguang vs. Bank of China |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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