Correlation Between Hang Xiao and Zhangjiagang Freetrade
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By analyzing existing cross correlation between Hang Xiao Steel and Zhangjiagang Freetrade Science, you can compare the effects of market volatilities on Hang Xiao and Zhangjiagang Freetrade 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 Zhangjiagang Freetrade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hang Xiao and Zhangjiagang Freetrade.
Diversification Opportunities for Hang Xiao and Zhangjiagang Freetrade
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hang and Zhangjiagang is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Hang Xiao Steel and Zhangjiagang Freetrade Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhangjiagang Freetrade 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 Zhangjiagang Freetrade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhangjiagang Freetrade has no effect on the direction of Hang Xiao i.e., Hang Xiao and Zhangjiagang Freetrade go up and down completely randomly.
Pair Corralation between Hang Xiao and Zhangjiagang Freetrade
Assuming the 90 days trading horizon Hang Xiao Steel is expected to under-perform the Zhangjiagang Freetrade. But the stock apears to be less risky and, when comparing its historical volatility, Hang Xiao Steel is 1.39 times less risky than Zhangjiagang Freetrade. The stock trades about -0.07 of its potential returns per unit of risk. The Zhangjiagang Freetrade Science is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 349.00 in Zhangjiagang Freetrade Science on August 28, 2024 and sell it today you would earn a total of 26.00 from holding Zhangjiagang Freetrade Science or generate 7.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hang Xiao Steel vs. Zhangjiagang Freetrade Science
Performance |
| Timeline |
| Hang Xiao Steel |
| Zhangjiagang Freetrade |
Hang Xiao and Zhangjiagang Freetrade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hang Xiao and Zhangjiagang Freetrade
The main advantage of trading using opposite Hang Xiao and Zhangjiagang Freetrade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hang Xiao position performs unexpectedly, Zhangjiagang Freetrade 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 Zhangjiagang Freetrade will offset losses from the drop in Zhangjiagang Freetrade's long position.| Hang Xiao vs. Tongxing Environmental Protection | Hang Xiao vs. Fiberhome Telecommunication Technologies | Hang Xiao vs. Xiamen Goldenhome Co | Hang Xiao vs. Arrow Home Group |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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