Correlation Between Gem Year and Hangzhou Huawang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gem Year Industrial Co and Hangzhou Huawang New, you can compare the effects of market volatilities on Gem Year and Hangzhou Huawang 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 Gem Year with a short position of Hangzhou Huawang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gem Year and Hangzhou Huawang.
Diversification Opportunities for Gem Year and Hangzhou Huawang
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gem and Hangzhou is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Gem Year Industrial Co and Hangzhou Huawang New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Huawang New and Gem Year 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 Gem Year Industrial Co are associated (or correlated) with Hangzhou Huawang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Huawang New has no effect on the direction of Gem Year i.e., Gem Year and Hangzhou Huawang go up and down completely randomly.
Pair Corralation between Gem Year and Hangzhou Huawang
Assuming the 90 days trading horizon Gem Year Industrial Co is expected to generate 1.8 times more return on investment than Hangzhou Huawang. However, Gem Year is 1.8 times more volatile than Hangzhou Huawang New. It trades about 0.21 of its potential returns per unit of risk. Hangzhou Huawang New is currently generating about -0.14 per unit of risk. If you would invest 371.00 in Gem Year Industrial Co on August 29, 2024 and sell it today you would earn a total of 70.00 from holding Gem Year Industrial Co or generate 18.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gem Year Industrial Co vs. Hangzhou Huawang New
Performance |
| Timeline |
| Gem Year Industrial |
| Hangzhou Huawang New |
Gem Year and Hangzhou Huawang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gem Year and Hangzhou Huawang
The main advantage of trading using opposite Gem Year and Hangzhou Huawang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gem Year position performs unexpectedly, Hangzhou Huawang 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 Huawang will offset losses from the drop in Hangzhou Huawang's long position.| Gem Year vs. PetroChina Co Ltd | Gem Year vs. China State Construction | Gem Year vs. China Mobile Limited | Gem Year vs. Industrial and Commercial |
| Hangzhou Huawang vs. Qinghaihuading Industrial Co | Hangzhou Huawang vs. Hengli Industrial Development | Hangzhou Huawang vs. Gem Year Industrial Co | Hangzhou Huawang vs. Guangdong Jingyi Metal |
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.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |