Correlation Between Hangzhou Gisway and Tianjin Hi
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By analyzing existing cross correlation between Hangzhou Gisway Information and Tianjin Hi Tech Development, you can compare the effects of market volatilities on Hangzhou Gisway and Tianjin Hi 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 Tianjin Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Gisway and Tianjin Hi.
Diversification Opportunities for Hangzhou Gisway and Tianjin Hi
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hangzhou and Tianjin is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Gisway Information and Tianjin Hi Tech Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Hi Tech 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 Tianjin Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Hi Tech has no effect on the direction of Hangzhou Gisway i.e., Hangzhou Gisway and Tianjin Hi go up and down completely randomly.
Pair Corralation between Hangzhou Gisway and Tianjin Hi
Assuming the 90 days trading horizon Hangzhou Gisway Information is expected to under-perform the Tianjin Hi. In addition to that, Hangzhou Gisway is 1.22 times more volatile than Tianjin Hi Tech Development. It trades about -0.11 of its total potential returns per unit of risk. Tianjin Hi Tech Development is currently generating about 0.09 per unit of volatility. If you would invest 275.00 in Tianjin Hi Tech Development on November 3, 2024 and sell it today you would earn a total of 11.00 from holding Tianjin Hi Tech Development or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Gisway Information vs. Tianjin Hi Tech Development
Performance |
| Timeline |
| Hangzhou Gisway Info |
| Tianjin Hi Tech |
Hangzhou Gisway and Tianjin Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Gisway and Tianjin Hi
The main advantage of trading using opposite Hangzhou Gisway and Tianjin Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Gisway position performs unexpectedly, Tianjin Hi 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 Tianjin Hi will offset losses from the drop in Tianjin Hi's long position.| Hangzhou Gisway vs. Industrial and Commercial | Hangzhou Gisway vs. Kweichow Moutai Co | Hangzhou Gisway vs. Agricultural Bank of | Hangzhou Gisway vs. China Mobile Limited |
| Tianjin Hi vs. Sino Platinum Metals Co | Tianjin Hi vs. Allwin Telecommunication Co | Tianjin Hi vs. Hefei Metalforming Mach | Tianjin Hi vs. Jiaozuo Wanfang Aluminum |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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