Correlation Between Hangzhou Coco and Hangzhou Gaoxin
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By analyzing existing cross correlation between Hangzhou Coco Healthcare and Hangzhou Gaoxin Rubber, you can compare the effects of market volatilities on Hangzhou Coco and Hangzhou Gaoxin 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 Hangzhou Gaoxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Coco and Hangzhou Gaoxin.
Diversification Opportunities for Hangzhou Coco and Hangzhou Gaoxin
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hangzhou and Hangzhou is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Coco Healthcare and Hangzhou Gaoxin Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Gaoxin Rubber 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 Hangzhou Gaoxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Gaoxin Rubber has no effect on the direction of Hangzhou Coco i.e., Hangzhou Coco and Hangzhou Gaoxin go up and down completely randomly.
Pair Corralation between Hangzhou Coco and Hangzhou Gaoxin
Assuming the 90 days trading horizon Hangzhou Coco Healthcare is expected to under-perform the Hangzhou Gaoxin. But the stock apears to be less risky and, when comparing its historical volatility, Hangzhou Coco Healthcare is 1.23 times less risky than Hangzhou Gaoxin. The stock trades about -0.01 of its potential returns per unit of risk. The Hangzhou Gaoxin Rubber is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 959.00 in Hangzhou Gaoxin Rubber on September 13, 2024 and sell it today you would earn a total of 166.00 from holding Hangzhou Gaoxin Rubber or generate 17.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Coco Healthcare vs. Hangzhou Gaoxin Rubber
Performance |
| Timeline |
| Hangzhou Coco Healthcare |
| Hangzhou Gaoxin Rubber |
Hangzhou Coco and Hangzhou Gaoxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Coco and Hangzhou Gaoxin
The main advantage of trading using opposite Hangzhou Coco and Hangzhou Gaoxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Coco position performs unexpectedly, Hangzhou Gaoxin 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 Gaoxin will offset losses from the drop in Hangzhou Gaoxin's long position.| Hangzhou Coco vs. Agricultural Bank of | Hangzhou Coco vs. Industrial and Commercial | Hangzhou Coco vs. Bank of China | Hangzhou Coco vs. PetroChina Co Ltd |
| Hangzhou Gaoxin vs. Hangzhou Coco Healthcare | Hangzhou Gaoxin vs. Everjoy Health Group | Hangzhou Gaoxin vs. Hangzhou Pinming Software | Hangzhou Gaoxin vs. Glodon Software 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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