Correlation Between Hangzhou Guotai and China Everbright
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By analyzing existing cross correlation between Hangzhou Guotai Environmental and China Everbright Bank, you can compare the effects of market volatilities on Hangzhou Guotai and China Everbright 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 China Everbright. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Guotai and China Everbright.
Diversification Opportunities for Hangzhou Guotai and China Everbright
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hangzhou and China is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Guotai Environmental and China Everbright Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Everbright Bank 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 China Everbright. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Everbright Bank has no effect on the direction of Hangzhou Guotai i.e., Hangzhou Guotai and China Everbright go up and down completely randomly.
Pair Corralation between Hangzhou Guotai and China Everbright
Assuming the 90 days trading horizon Hangzhou Guotai Environmental is expected to under-perform the China Everbright. In addition to that, Hangzhou Guotai is 1.42 times more volatile than China Everbright Bank. It trades about -0.04 of its total potential returns per unit of risk. China Everbright Bank is currently generating about 0.0 per unit of volatility. If you would invest 369.00 in China Everbright Bank on October 12, 2024 and sell it today you would lose (1.00) from holding China Everbright Bank or give up 0.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Guotai Environmental vs. China Everbright Bank
Performance |
| Timeline |
| Hangzhou Guotai Envi |
| China Everbright Bank |
Hangzhou Guotai and China Everbright Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Guotai and China Everbright
The main advantage of trading using opposite Hangzhou Guotai and China Everbright positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Guotai position performs unexpectedly, China Everbright 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 China Everbright will offset losses from the drop in China Everbright's long position.| Hangzhou Guotai vs. HUAQIN TECHNOLOGY LTD | Hangzhou Guotai vs. Soyea Technology Co | Hangzhou Guotai vs. Kuangda Technology Group | Hangzhou Guotai vs. Kingsignal Technology Co |
| China Everbright vs. Penyao Environmental Protection | China Everbright vs. Baoshan Iron Steel | China Everbright vs. Hangzhou Guotai Environmental | China Everbright vs. Porton Fine Chemicals |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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