Correlation Between Hangzhou Gisway and Zhongrun Resources
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By analyzing existing cross correlation between Hangzhou Gisway Information and Zhongrun Resources Investment, you can compare the effects of market volatilities on Hangzhou Gisway and Zhongrun Resources 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 Gisway with a short position of Zhongrun Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Gisway and Zhongrun Resources.
Diversification Opportunities for Hangzhou Gisway and Zhongrun Resources
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hangzhou and Zhongrun is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Gisway Information and Zhongrun Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongrun Resources and Hangzhou Gisway 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 Gisway Information are associated (or correlated) with Zhongrun Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongrun Resources has no effect on the direction of Hangzhou Gisway i.e., Hangzhou Gisway and Zhongrun Resources go up and down completely randomly.
Pair Corralation between Hangzhou Gisway and Zhongrun Resources
Assuming the 90 days trading horizon Hangzhou Gisway Information is expected to generate 0.58 times more return on investment than Zhongrun Resources. However, Hangzhou Gisway Information is 1.71 times less risky than Zhongrun Resources. It trades about 0.08 of its potential returns per unit of risk. Zhongrun Resources Investment is currently generating about -0.23 per unit of risk. If you would invest 3,245 in Hangzhou Gisway Information on September 12, 2024 and sell it today you would earn a total of 126.00 from holding Hangzhou Gisway Information or generate 3.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Gisway Information vs. Zhongrun Resources Investment
Performance |
| Timeline |
| Hangzhou Gisway Info |
| Zhongrun Resources |
Hangzhou Gisway and Zhongrun Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Gisway and Zhongrun Resources
The main advantage of trading using opposite Hangzhou Gisway and Zhongrun Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Gisway position performs unexpectedly, Zhongrun Resources 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 Zhongrun Resources will offset losses from the drop in Zhongrun Resources' long position.| Hangzhou Gisway vs. Gansu Jiu Steel | Hangzhou Gisway vs. Shandong Mining Machinery | Hangzhou Gisway vs. Aba Chemicals Corp | Hangzhou Gisway vs. BlueFocus Communication Group |
| Zhongrun Resources vs. Industrial and Commercial | Zhongrun Resources vs. China Construction Bank | Zhongrun Resources vs. Bank of China | Zhongrun Resources vs. Agricultural Bank of |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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