Correlation Between V V and Hangzhou Arcvideo
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By analyzing existing cross correlation between V V Food and Hangzhou Arcvideo Technology, you can compare the effects of market volatilities on V V and Hangzhou Arcvideo 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 V V with a short position of Hangzhou Arcvideo. Check out your portfolio center. Please also check ongoing floating volatility patterns of V V and Hangzhou Arcvideo.
Diversification Opportunities for V V and Hangzhou Arcvideo
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 600300 and Hangzhou is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding V V Food and Hangzhou Arcvideo Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Arcvideo and V V 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 V V Food are associated (or correlated) with Hangzhou Arcvideo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Arcvideo has no effect on the direction of V V i.e., V V and Hangzhou Arcvideo go up and down completely randomly.
Pair Corralation between V V and Hangzhou Arcvideo
Assuming the 90 days trading horizon V V Food is expected to under-perform the Hangzhou Arcvideo. But the stock apears to be less risky and, when comparing its historical volatility, V V Food is 2.73 times less risky than Hangzhou Arcvideo. The stock trades about -0.01 of its potential returns per unit of risk. The Hangzhou Arcvideo Technology is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,874 in Hangzhou Arcvideo Technology on October 16, 2024 and sell it today you would lose (498.00) from holding Hangzhou Arcvideo Technology or give up 17.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
V V Food vs. Hangzhou Arcvideo Technology
Performance |
| Timeline |
| V V Food |
| Hangzhou Arcvideo |
V V and Hangzhou Arcvideo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with V V and Hangzhou Arcvideo
The main advantage of trading using opposite V V and Hangzhou Arcvideo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if V V position performs unexpectedly, Hangzhou Arcvideo 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 Arcvideo will offset losses from the drop in Hangzhou Arcvideo's long position.| V V vs. Nanjing Putian Telecommunications | V V vs. Beijing Kingsoft Office | V V vs. Bus Online Co | V V vs. Songz Automobile Air |
| Hangzhou Arcvideo vs. Guangzhou Zhujiang Brewery | Hangzhou Arcvideo vs. Beijing Yanjing Brewery | Hangzhou Arcvideo vs. Eastroc Beverage Group | Hangzhou Arcvideo vs. Xinjiang Baodi Mining |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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