Correlation Between Hangzhou Gisway and Shandong Hongchuang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hangzhou Gisway Information and Shandong Hongchuang Aluminum, you can compare the effects of market volatilities on Hangzhou Gisway and Shandong Hongchuang 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 Shandong Hongchuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Gisway and Shandong Hongchuang.
Diversification Opportunities for Hangzhou Gisway and Shandong Hongchuang
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hangzhou and Shandong is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Gisway Information and Shandong Hongchuang Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Hongchuang 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 Shandong Hongchuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Hongchuang has no effect on the direction of Hangzhou Gisway i.e., Hangzhou Gisway and Shandong Hongchuang go up and down completely randomly.
Pair Corralation between Hangzhou Gisway and Shandong Hongchuang
Assuming the 90 days trading horizon Hangzhou Gisway Information is expected to under-perform the Shandong Hongchuang. In addition to that, Hangzhou Gisway is 1.53 times more volatile than Shandong Hongchuang Aluminum. It trades about -0.02 of its total potential returns per unit of risk. Shandong Hongchuang Aluminum is currently generating about 0.37 per unit of volatility. If you would invest 766.00 in Shandong Hongchuang Aluminum on October 12, 2024 and sell it today you would earn a total of 256.00 from holding Shandong Hongchuang Aluminum or generate 33.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Hangzhou Gisway Information vs. Shandong Hongchuang Aluminum
Performance |
| Timeline |
| Hangzhou Gisway Info |
| Shandong Hongchuang |
Hangzhou Gisway and Shandong Hongchuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Gisway and Shandong Hongchuang
The main advantage of trading using opposite Hangzhou Gisway and Shandong Hongchuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Gisway position performs unexpectedly, Shandong Hongchuang 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 Shandong Hongchuang will offset losses from the drop in Shandong Hongchuang's long position.| Hangzhou Gisway vs. Unisplendour Corp | Hangzhou Gisway vs. Keda Clean Energy | Hangzhou Gisway vs. Nanjing Putian Telecommunications | Hangzhou Gisway vs. Shaanxi Meineng Clean |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |