Correlation Between Hangzhou Gisway and CITIC Guoan
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By analyzing existing cross correlation between Hangzhou Gisway Information and CITIC Guoan Information, you can compare the effects of market volatilities on Hangzhou Gisway and CITIC Guoan 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 CITIC Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Gisway and CITIC Guoan.
Diversification Opportunities for Hangzhou Gisway and CITIC Guoan
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hangzhou and CITIC is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Gisway Information and CITIC Guoan Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Guoan Information 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 CITIC Guoan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC Guoan Information has no effect on the direction of Hangzhou Gisway i.e., Hangzhou Gisway and CITIC Guoan go up and down completely randomly.
Pair Corralation between Hangzhou Gisway and CITIC Guoan
Assuming the 90 days trading horizon Hangzhou Gisway Information is expected to generate 0.63 times more return on investment than CITIC Guoan. However, Hangzhou Gisway Information is 1.59 times less risky than CITIC Guoan. It trades about 0.13 of its potential returns per unit of risk. CITIC Guoan Information is currently generating about 0.06 per unit of risk. If you would invest 3,045 in Hangzhou Gisway Information on September 3, 2024 and sell it today you would earn a total of 189.00 from holding Hangzhou Gisway Information or generate 6.21% 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. CITIC Guoan Information
Performance |
| Timeline |
| Hangzhou Gisway Info |
| CITIC Guoan Information |
Hangzhou Gisway and CITIC Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Gisway and CITIC Guoan
The main advantage of trading using opposite Hangzhou Gisway and CITIC Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Gisway position performs unexpectedly, CITIC Guoan 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 CITIC Guoan will offset losses from the drop in CITIC Guoan's long position.| Hangzhou Gisway vs. Fujian Longzhou Transportation | Hangzhou Gisway vs. Hainan Haiqi Transportation | Hangzhou Gisway vs. Broadex Technologies Co | Hangzhou Gisway vs. Heilongjiang Transport Development |
| CITIC Guoan vs. Gansu Jiu Steel | CITIC Guoan vs. Ming Yang Smart | CITIC Guoan vs. Aba Chemicals Corp | CITIC Guoan vs. Loctek Ergonomic 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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