Correlation Between China Asset and Hangzhou Pinming
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By analyzing existing cross correlation between China Asset Management and Hangzhou Pinming Software, you can compare the effects of market volatilities on China Asset and Hangzhou Pinming 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 China Asset with a short position of Hangzhou Pinming. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and Hangzhou Pinming.
Diversification Opportunities for China Asset and Hangzhou Pinming
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between China and Hangzhou is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management and Hangzhou Pinming Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Pinming Software and China Asset 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 China Asset Management are associated (or correlated) with Hangzhou Pinming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Pinming Software has no effect on the direction of China Asset i.e., China Asset and Hangzhou Pinming go up and down completely randomly.
Pair Corralation between China Asset and Hangzhou Pinming
Assuming the 90 days trading horizon China Asset Management is expected to generate 0.49 times more return on investment than Hangzhou Pinming. However, China Asset Management is 2.04 times less risky than Hangzhou Pinming. It trades about 0.43 of its potential returns per unit of risk. Hangzhou Pinming Software is currently generating about -0.1 per unit of risk. If you would invest 316.00 in China Asset Management on September 27, 2024 and sell it today you would earn a total of 39.00 from holding China Asset Management or generate 12.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Asset Management vs. Hangzhou Pinming Software
Performance |
| Timeline |
| China Asset Management |
| Hangzhou Pinming Software |
China Asset and Hangzhou Pinming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Asset and Hangzhou Pinming
The main advantage of trading using opposite China Asset and Hangzhou Pinming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset position performs unexpectedly, Hangzhou Pinming 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 Hangzhou Pinming will offset losses from the drop in Hangzhou Pinming's long position.| China Asset vs. CICC Fund Management | China Asset vs. Chengdu Spaceon Electronics | China Asset vs. Anhui Huaren Health | China Asset vs. Heren Health Co |
| Hangzhou Pinming vs. Southern PublishingMedia Co | Hangzhou Pinming vs. China Asset Management | Hangzhou Pinming vs. Jiangsu Phoenix Publishing | Hangzhou Pinming vs. Shandong Publishing Media |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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