Correlation Between Hangzhou Gisway and Hang Xiao
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By analyzing existing cross correlation between Hangzhou Gisway Information and Hang Xiao Steel, you can compare the effects of market volatilities on Hangzhou Gisway and Hang Xiao 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 Hang Xiao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Gisway and Hang Xiao.
Diversification Opportunities for Hangzhou Gisway and Hang Xiao
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hangzhou and Hang is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Gisway Information and Hang Xiao Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hang Xiao Steel 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 Hang Xiao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hang Xiao Steel has no effect on the direction of Hangzhou Gisway i.e., Hangzhou Gisway and Hang Xiao go up and down completely randomly.
Pair Corralation between Hangzhou Gisway and Hang Xiao
Assuming the 90 days trading horizon Hangzhou Gisway Information is expected to generate 1.13 times more return on investment than Hang Xiao. However, Hangzhou Gisway is 1.13 times more volatile than Hang Xiao Steel. It trades about 0.05 of its potential returns per unit of risk. Hang Xiao Steel is currently generating about 0.01 per unit of risk. If you would invest 3,310 in Hangzhou Gisway Information on September 13, 2024 and sell it today you would earn a total of 70.00 from holding Hangzhou Gisway Information or generate 2.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Gisway Information vs. Hang Xiao Steel
Performance |
| Timeline |
| Hangzhou Gisway Info |
| Hang Xiao Steel |
Hangzhou Gisway and Hang Xiao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Gisway and Hang Xiao
The main advantage of trading using opposite Hangzhou Gisway and Hang Xiao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Gisway position performs unexpectedly, Hang Xiao 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 Hang Xiao will offset losses from the drop in Hang Xiao's long position.| Hangzhou Gisway vs. China Petroleum Chemical | Hangzhou Gisway vs. PetroChina Co Ltd | Hangzhou Gisway vs. China State Construction | Hangzhou Gisway vs. China Railway Group |
| Hang Xiao vs. Nanjing Putian Telecommunications | Hang Xiao vs. Tianjin Realty Development | Hang Xiao vs. Kangyue Technology Co | Hang Xiao vs. Shenzhen Hifuture Electric |
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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