Correlation Between Hangzhou Guotai and Anhui Tongguan
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By analyzing existing cross correlation between Hangzhou Guotai Environmental and Anhui Tongguan Copper, you can compare the effects of market volatilities on Hangzhou Guotai and Anhui Tongguan 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 Anhui Tongguan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Guotai and Anhui Tongguan.
Diversification Opportunities for Hangzhou Guotai and Anhui Tongguan
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hangzhou and Anhui is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Guotai Environmental and Anhui Tongguan Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Tongguan Copper 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 Anhui Tongguan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Tongguan Copper has no effect on the direction of Hangzhou Guotai i.e., Hangzhou Guotai and Anhui Tongguan go up and down completely randomly.
Pair Corralation between Hangzhou Guotai and Anhui Tongguan
Assuming the 90 days trading horizon Hangzhou Guotai Environmental is expected to generate 0.79 times more return on investment than Anhui Tongguan. However, Hangzhou Guotai Environmental is 1.26 times less risky than Anhui Tongguan. It trades about 0.18 of its potential returns per unit of risk. Anhui Tongguan Copper is currently generating about 0.0 per unit of risk. If you would invest 2,902 in Hangzhou Guotai Environmental on November 3, 2024 and sell it today you would earn a total of 268.00 from holding Hangzhou Guotai Environmental or generate 9.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Guotai Environmental vs. Anhui Tongguan Copper
Performance |
| Timeline |
| Hangzhou Guotai Envi |
| Anhui Tongguan Copper |
Hangzhou Guotai and Anhui Tongguan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Guotai and Anhui Tongguan
The main advantage of trading using opposite Hangzhou Guotai and Anhui Tongguan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Guotai position performs unexpectedly, Anhui Tongguan 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 Anhui Tongguan will offset losses from the drop in Anhui Tongguan's long position.| Hangzhou Guotai vs. Shengda Mining Co | Hangzhou Guotai vs. Zhejiang Yongjin Metal | Hangzhou Guotai vs. Chongqing Brewery Co | Hangzhou Guotai vs. Western Metal Materials |
| Anhui Tongguan vs. Nanjing Putian Telecommunications | Anhui Tongguan vs. Cloud Live Technology | Anhui Tongguan vs. Shenzhen Coship Electronics | Anhui Tongguan vs. Shenzhen Hifuture Electric |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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