Correlation Between Hang Xiao and Finework New
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By analyzing existing cross correlation between Hang Xiao Steel and Finework New Energy, you can compare the effects of market volatilities on Hang Xiao and Finework New 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 Hang Xiao with a short position of Finework New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hang Xiao and Finework New.
Diversification Opportunities for Hang Xiao and Finework New
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hang and Finework is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Hang Xiao Steel and Finework New Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finework New Energy and Hang Xiao 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 Hang Xiao Steel are associated (or correlated) with Finework New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Finework New Energy has no effect on the direction of Hang Xiao i.e., Hang Xiao and Finework New go up and down completely randomly.
Pair Corralation between Hang Xiao and Finework New
Assuming the 90 days trading horizon Hang Xiao Steel is expected to generate 0.93 times more return on investment than Finework New. However, Hang Xiao Steel is 1.07 times less risky than Finework New. It trades about 0.02 of its potential returns per unit of risk. Finework New Energy is currently generating about -0.04 per unit of risk. If you would invest 302.00 in Hang Xiao Steel on September 13, 2024 and sell it today you would earn a total of 2.00 from holding Hang Xiao Steel or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hang Xiao Steel vs. Finework New Energy
Performance |
| Timeline |
| Hang Xiao Steel |
| Finework New Energy |
Hang Xiao and Finework New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hang Xiao and Finework New
The main advantage of trading using opposite Hang Xiao and Finework New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hang Xiao position performs unexpectedly, Finework New 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 Finework New will offset losses from the drop in Finework New's long position.| Hang Xiao vs. Sanan Optoelectronics Co | Hang Xiao vs. Olympic Circuit Technology | Hang Xiao vs. Bomin Electronics Co | Hang Xiao vs. Unigroup Guoxin Microelectronics |
| Finework New vs. Xinjiang Baodi Mining | Finework New vs. Longmaster Information Tech | Finework New vs. Zhejiang Yayi Metal | Finework New vs. Hefei Metalforming Mach |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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