Correlation Between Shenzhen and Hangzhou Weiguang
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By analyzing existing cross correlation between Shenzhen AV Display Co and Hangzhou Weiguang Electronic, you can compare the effects of market volatilities on Shenzhen 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 Shenzhen with a short position of Hangzhou Weiguang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen and Hangzhou Weiguang.
Diversification Opportunities for Shenzhen and Hangzhou Weiguang
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Hangzhou is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen AV Display Co and Hangzhou Weiguang Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Weiguang and Shenzhen 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 Shenzhen AV Display Co 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 Shenzhen i.e., Shenzhen and Hangzhou Weiguang go up and down completely randomly.
Pair Corralation between Shenzhen and Hangzhou Weiguang
Assuming the 90 days trading horizon Shenzhen AV Display Co is expected to generate 1.47 times more return on investment than Hangzhou Weiguang. However, Shenzhen is 1.47 times more volatile than Hangzhou Weiguang Electronic. It trades about 0.02 of its potential returns per unit of risk. Hangzhou Weiguang Electronic is currently generating about 0.0 per unit of risk. If you would invest 2,912 in Shenzhen AV Display Co on October 9, 2024 and sell it today you would earn a total of 2.00 from holding Shenzhen AV Display Co or generate 0.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen AV Display Co vs. Hangzhou Weiguang Electronic
Performance |
| Timeline |
| Shenzhen AV Display |
| Hangzhou Weiguang |
Shenzhen and Hangzhou Weiguang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen and Hangzhou Weiguang
The main advantage of trading using opposite Shenzhen and Hangzhou Weiguang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen 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.| Shenzhen vs. Chenzhou Jingui Silver | Shenzhen vs. Chengtun Mining Group | Shenzhen vs. Shenyang Blue Silver | Shenzhen vs. Zhongrun Resources Investment |
| Hangzhou Weiguang vs. Kweichow Moutai Co | Hangzhou Weiguang vs. Contemporary Amperex Technology | Hangzhou Weiguang vs. G bits Network Technology | Hangzhou Weiguang vs. Beijing Roborock Technology |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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