Correlation Between Hangzhou Gisway and China Building
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By analyzing existing cross correlation between Hangzhou Gisway Information and China Building Material, you can compare the effects of market volatilities on Hangzhou Gisway and China Building 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 China Building. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Gisway and China Building.
Diversification Opportunities for Hangzhou Gisway and China Building
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hangzhou and China is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Gisway Information and China Building Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Building Material 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 China Building. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Building Material has no effect on the direction of Hangzhou Gisway i.e., Hangzhou Gisway and China Building go up and down completely randomly.
Pair Corralation between Hangzhou Gisway and China Building
Assuming the 90 days trading horizon Hangzhou Gisway is expected to generate 1.49 times less return on investment than China Building. But when comparing it to its historical volatility, Hangzhou Gisway Information is 1.15 times less risky than China Building. It trades about 0.08 of its potential returns per unit of risk. China Building Material is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 736.00 in China Building Material on September 12, 2024 and sell it today you would earn a total of 44.00 from holding China Building Material or generate 5.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Gisway Information vs. China Building Material
Performance |
| Timeline |
| Hangzhou Gisway Info |
| China Building Material |
Hangzhou Gisway and China Building Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Gisway and China Building
The main advantage of trading using opposite Hangzhou Gisway and China Building positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Gisway position performs unexpectedly, China Building 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 China Building will offset losses from the drop in China Building's long position.| Hangzhou Gisway vs. Gansu Jiu Steel | Hangzhou Gisway vs. Shandong Mining Machinery | Hangzhou Gisway vs. Aba Chemicals Corp | Hangzhou Gisway vs. BlueFocus Communication Group |
| China Building vs. Qumei Furniture Group | China Building vs. AUPU Home Style | China Building vs. Easyhome New Retail | China Building vs. Markor International Home |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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