Correlation Between Hangzhou Guotai and Shandong Sino
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By analyzing existing cross correlation between Hangzhou Guotai Environmental and Shandong Sino Agri United, you can compare the effects of market volatilities on Hangzhou Guotai and Shandong Sino 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 Shandong Sino. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Guotai and Shandong Sino.
Diversification Opportunities for Hangzhou Guotai and Shandong Sino
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hangzhou and Shandong is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Guotai Environmental and Shandong Sino Agri United in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sino Agri 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 Shandong Sino. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sino Agri has no effect on the direction of Hangzhou Guotai i.e., Hangzhou Guotai and Shandong Sino go up and down completely randomly.
Pair Corralation between Hangzhou Guotai and Shandong Sino
Assuming the 90 days trading horizon Hangzhou Guotai Environmental is expected to generate 1.1 times more return on investment than Shandong Sino. However, Hangzhou Guotai is 1.1 times more volatile than Shandong Sino Agri United. It trades about 0.01 of its potential returns per unit of risk. Shandong Sino Agri United is currently generating about -0.03 per unit of risk. If you would invest 3,680 in Hangzhou Guotai Environmental on October 25, 2024 and sell it today you would lose (404.00) from holding Hangzhou Guotai Environmental or give up 10.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 91.27% |
| Values | Daily Returns |
Hangzhou Guotai Environmental vs. Shandong Sino Agri United
Performance |
| Timeline |
| Hangzhou Guotai Envi |
| Shandong Sino Agri |
Hangzhou Guotai and Shandong Sino Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Guotai and Shandong Sino
The main advantage of trading using opposite Hangzhou Guotai and Shandong Sino positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Guotai position performs unexpectedly, Shandong Sino 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 Shandong Sino will offset losses from the drop in Shandong Sino's long position.| Hangzhou Guotai vs. Iat Automobile Technology | Hangzhou Guotai vs. Changchun Engley Automobile | Hangzhou Guotai vs. Luyin Investment Group | Hangzhou Guotai vs. Jiangsu Yueda Investment |
| Shandong Sino vs. Lotus Health Group | Shandong Sino vs. Hangzhou Minsheng Healthcare | Shandong Sino vs. Goodwill E Health | Shandong Sino vs. Ningbo MedicalSystem Biotechnology |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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