Correlation Between Hangzhou Gisway and Shandong Polymer
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By analyzing existing cross correlation between Hangzhou Gisway Information and Shandong Polymer Biochemicals, you can compare the effects of market volatilities on Hangzhou Gisway and Shandong Polymer 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 Polymer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Gisway and Shandong Polymer.
Diversification Opportunities for Hangzhou Gisway and Shandong Polymer
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hangzhou and Shandong is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Gisway Information and Shandong Polymer Biochemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Polymer Bio 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 Polymer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Polymer Bio has no effect on the direction of Hangzhou Gisway i.e., Hangzhou Gisway and Shandong Polymer go up and down completely randomly.
Pair Corralation between Hangzhou Gisway and Shandong Polymer
Assuming the 90 days trading horizon Hangzhou Gisway Information is not expected to generate positive returns. Moreover, Hangzhou Gisway is 1.31 times more volatile than Shandong Polymer Biochemicals. It trades away all of its potential returns to assume current level of volatility. Shandong Polymer Biochemicals is currently generating about 0.0 per unit of risk. If you would invest 553.00 in Shandong Polymer Biochemicals on September 3, 2024 and sell it today you would lose (89.00) from holding Shandong Polymer Biochemicals or give up 16.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 80.29% |
| Values | Daily Returns |
Hangzhou Gisway Information vs. Shandong Polymer Biochemicals
Performance |
| Timeline |
| Hangzhou Gisway Info |
| Shandong Polymer Bio |
Hangzhou Gisway and Shandong Polymer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Gisway and Shandong Polymer
The main advantage of trading using opposite Hangzhou Gisway and Shandong Polymer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Gisway position performs unexpectedly, Shandong Polymer 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 Polymer will offset losses from the drop in Shandong Polymer'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 |
| Shandong Polymer vs. Zijin Mining Group | Shandong Polymer vs. Baoshan Iron Steel | Shandong Polymer vs. Hoshine Silicon Ind |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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