Correlation Between Hangzhou Coco and Blue Sail
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By analyzing existing cross correlation between Hangzhou Coco Healthcare and Blue Sail Medical, you can compare the effects of market volatilities on Hangzhou Coco and Blue Sail 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 Coco with a short position of Blue Sail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Coco and Blue Sail.
Diversification Opportunities for Hangzhou Coco and Blue Sail
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hangzhou and Blue is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Coco Healthcare and Blue Sail Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Sail Medical and Hangzhou Coco 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 Coco Healthcare are associated (or correlated) with Blue Sail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Sail Medical has no effect on the direction of Hangzhou Coco i.e., Hangzhou Coco and Blue Sail go up and down completely randomly.
Pair Corralation between Hangzhou Coco and Blue Sail
Assuming the 90 days trading horizon Hangzhou Coco Healthcare is expected to generate 1.49 times more return on investment than Blue Sail. However, Hangzhou Coco is 1.49 times more volatile than Blue Sail Medical. It trades about 0.1 of its potential returns per unit of risk. Blue Sail Medical is currently generating about 0.09 per unit of risk. If you would invest 942.00 in Hangzhou Coco Healthcare on September 12, 2024 and sell it today you would earn a total of 53.00 from holding Hangzhou Coco Healthcare or generate 5.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Coco Healthcare vs. Blue Sail Medical
Performance |
| Timeline |
| Hangzhou Coco Healthcare |
| Blue Sail Medical |
Hangzhou Coco and Blue Sail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Coco and Blue Sail
The main advantage of trading using opposite Hangzhou Coco and Blue Sail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Coco position performs unexpectedly, Blue Sail 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 Blue Sail will offset losses from the drop in Blue Sail's long position.| Hangzhou Coco vs. China Petroleum Chemical | Hangzhou Coco vs. PetroChina Co Ltd | Hangzhou Coco vs. China State Construction | Hangzhou Coco vs. China Railway Group |
| Blue Sail vs. Cultural Investment Holdings | Blue Sail vs. Gome Telecom Equipment | Blue Sail vs. Holitech Technology Co | Blue Sail vs. Zotye Automobile Co |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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