Correlation Between Hangzhou Guotai and Guangdong Xiongsu
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By analyzing existing cross correlation between Hangzhou Guotai Environmental and Guangdong Xiongsu Technology, you can compare the effects of market volatilities on Hangzhou Guotai and Guangdong Xiongsu 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 Guangdong Xiongsu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Guotai and Guangdong Xiongsu.
Diversification Opportunities for Hangzhou Guotai and Guangdong Xiongsu
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hangzhou and Guangdong is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Guotai Environmental and Guangdong Xiongsu Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Xiongsu 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 Guangdong Xiongsu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Xiongsu has no effect on the direction of Hangzhou Guotai i.e., Hangzhou Guotai and Guangdong Xiongsu go up and down completely randomly.
Pair Corralation between Hangzhou Guotai and Guangdong Xiongsu
Assuming the 90 days trading horizon Hangzhou Guotai Environmental is expected to generate 0.93 times more return on investment than Guangdong Xiongsu. However, Hangzhou Guotai Environmental is 1.08 times less risky than Guangdong Xiongsu. It trades about 0.19 of its potential returns per unit of risk. Guangdong Xiongsu Technology is currently generating about -0.26 per unit of risk. If you would invest 2,870 in Hangzhou Guotai Environmental on October 28, 2024 and sell it today you would earn a total of 293.00 from holding Hangzhou Guotai Environmental or generate 10.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Guotai Environmental vs. Guangdong Xiongsu Technology
Performance |
| Timeline |
| Hangzhou Guotai Envi |
| Guangdong Xiongsu |
Hangzhou Guotai and Guangdong Xiongsu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Guotai and Guangdong Xiongsu
The main advantage of trading using opposite Hangzhou Guotai and Guangdong Xiongsu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Guotai position performs unexpectedly, Guangdong Xiongsu 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 Guangdong Xiongsu will offset losses from the drop in Guangdong Xiongsu's long position.| Hangzhou Guotai vs. Industrial and Commercial | Hangzhou Guotai vs. Agricultural Bank of | Hangzhou Guotai vs. China Construction Bank | Hangzhou Guotai vs. Bank of China |
| Guangdong Xiongsu vs. Anhui Fuhuang Steel | Guangdong Xiongsu vs. Road Environment Technology | Guangdong Xiongsu vs. Hangzhou Guotai Environmental | Guangdong Xiongsu vs. Eit Environmental Development |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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