Correlation Between Hangzhou Gisway and Chengdu Xingrong
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By analyzing existing cross correlation between Hangzhou Gisway Information and Chengdu Xingrong Investment, you can compare the effects of market volatilities on Hangzhou Gisway and Chengdu Xingrong 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 Chengdu Xingrong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Gisway and Chengdu Xingrong.
Diversification Opportunities for Hangzhou Gisway and Chengdu Xingrong
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hangzhou and Chengdu is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Gisway Information and Chengdu Xingrong Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Xingrong Inv 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 Chengdu Xingrong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Xingrong Inv has no effect on the direction of Hangzhou Gisway i.e., Hangzhou Gisway and Chengdu Xingrong go up and down completely randomly.
Pair Corralation between Hangzhou Gisway and Chengdu Xingrong
Assuming the 90 days trading horizon Hangzhou Gisway Information is expected to generate 1.71 times more return on investment than Chengdu Xingrong. However, Hangzhou Gisway is 1.71 times more volatile than Chengdu Xingrong Investment. It trades about 0.08 of its potential returns per unit of risk. Chengdu Xingrong 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Gisway Information vs. Chengdu Xingrong Investment
Performance |
| Timeline |
| Hangzhou Gisway Info |
| Chengdu Xingrong Inv |
Hangzhou Gisway and Chengdu Xingrong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Gisway and Chengdu Xingrong
The main advantage of trading using opposite Hangzhou Gisway and Chengdu Xingrong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Gisway position performs unexpectedly, Chengdu Xingrong 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 Chengdu Xingrong will offset losses from the drop in Chengdu Xingrong's 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 |
| Chengdu Xingrong vs. Sportsoul Co Ltd | Chengdu Xingrong vs. Guizhou BroadcastingTV Info | Chengdu Xingrong vs. Lander Sports Development | Chengdu Xingrong vs. Road Environment Technology |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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