Correlation Between Hangzhou Gisway and Shanghai Electric
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By analyzing existing cross correlation between Hangzhou Gisway Information and Shanghai Electric Group, you can compare the effects of market volatilities on Hangzhou Gisway and Shanghai Electric 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 Shanghai Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Gisway and Shanghai Electric.
Diversification Opportunities for Hangzhou Gisway and Shanghai Electric
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hangzhou and Shanghai is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Gisway Information and Shanghai Electric Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Electric 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 Shanghai Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Electric has no effect on the direction of Hangzhou Gisway i.e., Hangzhou Gisway and Shanghai Electric go up and down completely randomly.
Pair Corralation between Hangzhou Gisway and Shanghai Electric
Assuming the 90 days trading horizon Hangzhou Gisway Information is expected to under-perform the Shanghai Electric. In addition to that, Hangzhou Gisway is 1.14 times more volatile than Shanghai Electric Group. It trades about -0.01 of its total potential returns per unit of risk. Shanghai Electric Group is currently generating about 0.12 per unit of volatility. If you would invest 426.00 in Shanghai Electric Group on September 4, 2024 and sell it today you would earn a total of 509.00 from holding Shanghai Electric Group or generate 119.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Gisway Information vs. Shanghai Electric Group
Performance |
| Timeline |
| Hangzhou Gisway Info |
| Shanghai Electric |
Hangzhou Gisway and Shanghai Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Gisway and Shanghai Electric
The main advantage of trading using opposite Hangzhou Gisway and Shanghai Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Gisway position performs unexpectedly, Shanghai Electric 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 Shanghai Electric will offset losses from the drop in Shanghai Electric's long position.| Hangzhou Gisway vs. Juewei Food Co | Hangzhou Gisway vs. Guocheng Mining Co | Hangzhou Gisway vs. Zhejiang Yayi Metal | Hangzhou Gisway vs. Xinjiang Baodi Mining |
| Shanghai Electric vs. Chengdu Kanghua Biological | Shanghai Electric vs. Beijing Wantai Biological | Shanghai Electric vs. Suzhou Novoprotein Scientific | Shanghai Electric vs. Aluminum Corp of |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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