Correlation Between Vats Liquor and Hangzhou Pinming
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By analyzing existing cross correlation between Vats Liquor Chain and Hangzhou Pinming Software, you can compare the effects of market volatilities on Vats Liquor and Hangzhou Pinming 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 Vats Liquor with a short position of Hangzhou Pinming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vats Liquor and Hangzhou Pinming.
Diversification Opportunities for Vats Liquor and Hangzhou Pinming
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vats and Hangzhou is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Vats Liquor Chain and Hangzhou Pinming Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Pinming Software and Vats Liquor 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 Vats Liquor Chain are associated (or correlated) with Hangzhou Pinming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Pinming Software has no effect on the direction of Vats Liquor i.e., Vats Liquor and Hangzhou Pinming go up and down completely randomly.
Pair Corralation between Vats Liquor and Hangzhou Pinming
Assuming the 90 days trading horizon Vats Liquor Chain is expected to under-perform the Hangzhou Pinming. But the stock apears to be less risky and, when comparing its historical volatility, Vats Liquor Chain is 1.18 times less risky than Hangzhou Pinming. The stock trades about -0.03 of its potential returns per unit of risk. The Hangzhou Pinming Software is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,082 in Hangzhou Pinming Software on October 16, 2024 and sell it today you would earn a total of 123.00 from holding Hangzhou Pinming Software or generate 5.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vats Liquor Chain vs. Hangzhou Pinming Software
Performance |
| Timeline |
| Vats Liquor Chain |
| Hangzhou Pinming Software |
Vats Liquor and Hangzhou Pinming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vats Liquor and Hangzhou Pinming
The main advantage of trading using opposite Vats Liquor and Hangzhou Pinming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vats Liquor position performs unexpectedly, Hangzhou Pinming 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 Pinming will offset losses from the drop in Hangzhou Pinming's long position.| Vats Liquor vs. China Publishing Media | Vats Liquor vs. Bank of Communications | Vats Liquor vs. Sportsoul Co Ltd | Vats Liquor vs. Guangdong Jinma Entertainment |
| Hangzhou Pinming vs. Beijing Yanjing Brewery | Hangzhou Pinming vs. Vats Liquor Chain | Hangzhou Pinming vs. Tonghua Grape Wine | Hangzhou Pinming vs. Sportsoul Co Ltd |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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