Correlation Between Gansu Yasheng and Hangzhou Prevail
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By analyzing existing cross correlation between Gansu Yasheng Industrial and Hangzhou Prevail Optoelectronic, you can compare the effects of market volatilities on Gansu Yasheng and Hangzhou Prevail 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 Gansu Yasheng with a short position of Hangzhou Prevail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Yasheng and Hangzhou Prevail.
Diversification Opportunities for Gansu Yasheng and Hangzhou Prevail
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gansu and Hangzhou is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Yasheng Industrial and Hangzhou Prevail Optoelectroni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Prevail Opt and Gansu Yasheng 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 Gansu Yasheng Industrial are associated (or correlated) with Hangzhou Prevail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Prevail Opt has no effect on the direction of Gansu Yasheng i.e., Gansu Yasheng and Hangzhou Prevail go up and down completely randomly.
Pair Corralation between Gansu Yasheng and Hangzhou Prevail
Assuming the 90 days trading horizon Gansu Yasheng Industrial is expected to generate 0.6 times more return on investment than Hangzhou Prevail. However, Gansu Yasheng Industrial is 1.66 times less risky than Hangzhou Prevail. It trades about 0.07 of its potential returns per unit of risk. Hangzhou Prevail Optoelectronic is currently generating about 0.0 per unit of risk. If you would invest 291.00 in Gansu Yasheng Industrial on September 5, 2024 and sell it today you would earn a total of 19.00 from holding Gansu Yasheng Industrial or generate 6.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Yasheng Industrial vs. Hangzhou Prevail Optoelectroni
Performance |
| Timeline |
| Gansu Yasheng Industrial |
| Hangzhou Prevail Opt |
Gansu Yasheng and Hangzhou Prevail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Yasheng and Hangzhou Prevail
The main advantage of trading using opposite Gansu Yasheng and Hangzhou Prevail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Yasheng position performs unexpectedly, Hangzhou Prevail 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 Prevail will offset losses from the drop in Hangzhou Prevail's long position.| Gansu Yasheng vs. Tianshui Huatian Technology | Gansu Yasheng vs. Sino Platinum Metals Co | Gansu Yasheng vs. HUAQIN TECHNOLOGY LTD | Gansu Yasheng vs. Dhc Software Co |
| Hangzhou Prevail vs. Eastroc Beverage Group | Hangzhou Prevail vs. Qingdao Foods Co | Hangzhou Prevail vs. Gansu Yasheng Industrial | Hangzhou Prevail vs. Lonkey Industrial Co |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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