Correlation Between Wuhan Xianglong and Hangzhou Gisway
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By analyzing existing cross correlation between Wuhan Xianglong Power and Hangzhou Gisway Information, you can compare the effects of market volatilities on Wuhan Xianglong and Hangzhou Gisway 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 Wuhan Xianglong with a short position of Hangzhou Gisway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Xianglong and Hangzhou Gisway.
Diversification Opportunities for Wuhan Xianglong and Hangzhou Gisway
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wuhan and Hangzhou is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Xianglong Power and Hangzhou Gisway Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Gisway Info and Wuhan Xianglong 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 Wuhan Xianglong Power are associated (or correlated) with Hangzhou Gisway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Gisway Info has no effect on the direction of Wuhan Xianglong i.e., Wuhan Xianglong and Hangzhou Gisway go up and down completely randomly.
Pair Corralation between Wuhan Xianglong and Hangzhou Gisway
Assuming the 90 days trading horizon Wuhan Xianglong Power is expected to generate 1.17 times more return on investment than Hangzhou Gisway. However, Wuhan Xianglong is 1.17 times more volatile than Hangzhou Gisway Information. It trades about 0.09 of its potential returns per unit of risk. Hangzhou Gisway Information is currently generating about 0.01 per unit of risk. If you would invest 798.00 in Wuhan Xianglong Power on September 3, 2024 and sell it today you would earn a total of 430.00 from holding Wuhan Xianglong Power or generate 53.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Xianglong Power vs. Hangzhou Gisway Information
Performance |
| Timeline |
| Wuhan Xianglong Power |
| Hangzhou Gisway Info |
Wuhan Xianglong and Hangzhou Gisway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Xianglong and Hangzhou Gisway
The main advantage of trading using opposite Wuhan Xianglong and Hangzhou Gisway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Xianglong position performs unexpectedly, Hangzhou Gisway 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 Gisway will offset losses from the drop in Hangzhou Gisway's long position.| Wuhan Xianglong vs. Cultural Investment Holdings | Wuhan Xianglong vs. Chengtun Mining Group | Wuhan Xianglong vs. Nuode Investment Co | Wuhan Xianglong vs. Metro Investment Development |
| Hangzhou Gisway vs. Fujian Longzhou Transportation | Hangzhou Gisway vs. Hainan Haiqi Transportation | Hangzhou Gisway vs. Broadex Technologies Co | Hangzhou Gisway vs. Heilongjiang Transport Development |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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