Correlation Between Hangzhou Guotai and Renxin New
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By analyzing existing cross correlation between Hangzhou Guotai Environmental and Renxin New Material, you can compare the effects of market volatilities on Hangzhou Guotai and Renxin New 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 Renxin New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Guotai and Renxin New.
Diversification Opportunities for Hangzhou Guotai and Renxin New
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hangzhou and Renxin is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Guotai Environmental and Renxin New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Renxin New Material 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 Renxin New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Renxin New Material has no effect on the direction of Hangzhou Guotai i.e., Hangzhou Guotai and Renxin New go up and down completely randomly.
Pair Corralation between Hangzhou Guotai and Renxin New
Assuming the 90 days trading horizon Hangzhou Guotai Environmental is expected to generate 0.9 times more return on investment than Renxin New. However, Hangzhou Guotai Environmental is 1.11 times less risky than Renxin New. It trades about 0.09 of its potential returns per unit of risk. Renxin New Material is currently generating about 0.07 per unit of risk. If you would invest 2,526 in Hangzhou Guotai Environmental on November 3, 2024 and sell it today you would earn a total of 644.00 from holding Hangzhou Guotai Environmental or generate 25.49% 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. Renxin New Material
Performance |
| Timeline |
| Hangzhou Guotai Envi |
| Renxin New Material |
Hangzhou Guotai and Renxin New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Guotai and Renxin New
The main advantage of trading using opposite Hangzhou Guotai and Renxin New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Guotai position performs unexpectedly, Renxin New 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 Renxin New will offset losses from the drop in Renxin New's long position.| Hangzhou Guotai vs. Industrial and Commercial | Hangzhou Guotai vs. Kweichow Moutai Co | Hangzhou Guotai vs. Agricultural Bank of | Hangzhou Guotai vs. China Mobile Limited |
| Renxin New vs. Glodon Software Co | Renxin New vs. Hangzhou Pinming Software | Renxin New vs. Peoples Insurance of | Renxin New vs. Industrial Bank Co |
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 Stocks Directory module to find actively traded stocks across global markets.
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