Correlation Between Hangzhou Guotai and Jinsanjiang Silicon
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By analyzing existing cross correlation between Hangzhou Guotai Environmental and Jinsanjiang Silicon Material, you can compare the effects of market volatilities on Hangzhou Guotai and Jinsanjiang Silicon 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 Jinsanjiang Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Guotai and Jinsanjiang Silicon.
Diversification Opportunities for Hangzhou Guotai and Jinsanjiang Silicon
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hangzhou and Jinsanjiang is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Guotai Environmental and Jinsanjiang Silicon Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinsanjiang Silicon 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 Jinsanjiang Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinsanjiang Silicon has no effect on the direction of Hangzhou Guotai i.e., Hangzhou Guotai and Jinsanjiang Silicon go up and down completely randomly.
Pair Corralation between Hangzhou Guotai and Jinsanjiang Silicon
Assuming the 90 days trading horizon Hangzhou Guotai Environmental is expected to generate 0.57 times more return on investment than Jinsanjiang Silicon. However, Hangzhou Guotai Environmental is 1.76 times less risky than Jinsanjiang Silicon. It trades about 0.08 of its potential returns per unit of risk. Jinsanjiang Silicon Material is currently generating about 0.01 per unit of risk. If you would invest 3,006 in Hangzhou Guotai Environmental on October 22, 2024 and sell it today you would earn a total of 221.00 from holding Hangzhou Guotai Environmental or generate 7.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Hangzhou Guotai Environmental vs. Jinsanjiang Silicon Material
Performance |
| Timeline |
| Hangzhou Guotai Envi |
| Jinsanjiang Silicon |
Hangzhou Guotai and Jinsanjiang Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Guotai and Jinsanjiang Silicon
The main advantage of trading using opposite Hangzhou Guotai and Jinsanjiang Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Guotai position performs unexpectedly, Jinsanjiang Silicon 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 Jinsanjiang Silicon will offset losses from the drop in Jinsanjiang Silicon's long position.| Hangzhou Guotai vs. Eastroc Beverage Group | Hangzhou Guotai vs. Malion New Materials | Hangzhou Guotai vs. Cangzhou Mingzhu Plastic | Hangzhou Guotai vs. Kangxin New Materials |
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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