Correlation Between Hangzhou Guotai and Tongxing Environmental
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By analyzing existing cross correlation between Hangzhou Guotai Environmental and Tongxing Environmental Protection, you can compare the effects of market volatilities on Hangzhou Guotai and Tongxing Environmental 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 Guotai with a short position of Tongxing Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Guotai and Tongxing Environmental.
Diversification Opportunities for Hangzhou Guotai and Tongxing Environmental
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hangzhou and Tongxing is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Guotai Environmental and Tongxing Environmental Protect in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongxing Environmental and Hangzhou Guotai 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 Guotai Environmental are associated (or correlated) with Tongxing Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongxing Environmental has no effect on the direction of Hangzhou Guotai i.e., Hangzhou Guotai and Tongxing Environmental go up and down completely randomly.
Pair Corralation between Hangzhou Guotai and Tongxing Environmental
Assuming the 90 days trading horizon Hangzhou Guotai Environmental is expected to generate 0.79 times more return on investment than Tongxing Environmental. However, Hangzhou Guotai Environmental is 1.26 times less risky than Tongxing Environmental. It trades about 0.19 of its potential returns per unit of risk. Tongxing Environmental Protection is currently generating about 0.03 per unit of risk. If you would invest 2,854 in Hangzhou Guotai Environmental on October 26, 2024 and sell it today you would earn a total of 309.00 from holding Hangzhou Guotai Environmental or generate 10.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Hangzhou Guotai Environmental vs. Tongxing Environmental Protect
Performance |
| Timeline |
| Hangzhou Guotai Envi |
| Tongxing Environmental |
Hangzhou Guotai and Tongxing Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Guotai and Tongxing Environmental
The main advantage of trading using opposite Hangzhou Guotai and Tongxing Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Guotai position performs unexpectedly, Tongxing Environmental 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 Tongxing Environmental will offset losses from the drop in Tongxing Environmental's long position.| Hangzhou Guotai vs. Sportsoul Co Ltd | Hangzhou Guotai vs. Shanghai Xinhua Media | Hangzhou Guotai vs. Southern PublishingMedia Co | Hangzhou Guotai vs. Heilongjiang Publishing Media |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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