Correlation Between Hangzhou Gisway and Eastern Communications
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By analyzing existing cross correlation between Hangzhou Gisway Information and Eastern Communications Co, you can compare the effects of market volatilities on Hangzhou Gisway and Eastern Communications 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 Eastern Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Gisway and Eastern Communications.
Diversification Opportunities for Hangzhou Gisway and Eastern Communications
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hangzhou and Eastern is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Gisway Information and Eastern Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Communications 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 Eastern Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Communications has no effect on the direction of Hangzhou Gisway i.e., Hangzhou Gisway and Eastern Communications go up and down completely randomly.
Pair Corralation between Hangzhou Gisway and Eastern Communications
Assuming the 90 days trading horizon Hangzhou Gisway Information is expected to generate 1.05 times more return on investment than Eastern Communications. However, Hangzhou Gisway is 1.05 times more volatile than Eastern Communications Co. It trades about 0.06 of its potential returns per unit of risk. Eastern Communications Co is currently generating about 0.05 per unit of risk. If you would invest 3,143 in Hangzhou Gisway Information on September 1, 2024 and sell it today you would earn a total of 91.00 from holding Hangzhou Gisway Information or generate 2.9% 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. Eastern Communications Co
Performance |
| Timeline |
| Hangzhou Gisway Info |
| Eastern Communications |
Hangzhou Gisway and Eastern Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Gisway and Eastern Communications
The main advantage of trading using opposite Hangzhou Gisway and Eastern Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Gisway position performs unexpectedly, Eastern Communications 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 Eastern Communications will offset losses from the drop in Eastern Communications' 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 |
| Eastern Communications vs. Wuxi Chemical Equipment | Eastern Communications vs. Yangmei Chemical Co | Eastern Communications vs. Lander Sports Development | Eastern Communications vs. Jiangsu Jinling Sports |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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