Correlation Between Hangzhou Gisway and Allied Machinery
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By analyzing existing cross correlation between Hangzhou Gisway Information and Allied Machinery Co, you can compare the effects of market volatilities on Hangzhou Gisway and Allied Machinery 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 Allied Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Gisway and Allied Machinery.
Diversification Opportunities for Hangzhou Gisway and Allied Machinery
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hangzhou and Allied is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Gisway Information and Allied Machinery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allied Machinery 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 Allied Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allied Machinery has no effect on the direction of Hangzhou Gisway i.e., Hangzhou Gisway and Allied Machinery go up and down completely randomly.
Pair Corralation between Hangzhou Gisway and Allied Machinery
Assuming the 90 days trading horizon Hangzhou Gisway Information is expected to generate 1.43 times more return on investment than Allied Machinery. However, Hangzhou Gisway is 1.43 times more volatile than Allied Machinery Co. It trades about 0.0 of its potential returns per unit of risk. Allied Machinery Co is currently generating about -0.01 per unit of risk. If you would invest 4,137 in Hangzhou Gisway Information on October 11, 2024 and sell it today you would lose (972.00) from holding Hangzhou Gisway Information or give up 23.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 85.95% |
| Values | Daily Returns |
Hangzhou Gisway Information vs. Allied Machinery Co
Performance |
| Timeline |
| Hangzhou Gisway Info |
| Allied Machinery |
Hangzhou Gisway and Allied Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Gisway and Allied Machinery
The main advantage of trading using opposite Hangzhou Gisway and Allied Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Gisway position performs unexpectedly, Allied Machinery 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 Allied Machinery will offset losses from the drop in Allied Machinery's long position.| Hangzhou Gisway vs. Biwin Storage Technology | Hangzhou Gisway vs. Muyuan Foodstuff Co | Hangzhou Gisway vs. Sublime China Information | Hangzhou Gisway vs. CITIC Guoan Information |
| Allied Machinery vs. Ping An Insurance | Allied Machinery vs. Chongqing Shunbo Aluminum | Allied Machinery vs. Jiangsu Financial Leasing | Allied Machinery vs. Unisplendour Corp |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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