Correlation Between Guangzhou Automobile and Hangzhou EZVIZ
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By analyzing existing cross correlation between Guangzhou Automobile Group and Hangzhou EZVIZ Network, you can compare the effects of market volatilities on Guangzhou Automobile and Hangzhou EZVIZ 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 Guangzhou Automobile with a short position of Hangzhou EZVIZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Automobile and Hangzhou EZVIZ.
Diversification Opportunities for Guangzhou Automobile and Hangzhou EZVIZ
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Hangzhou is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Automobile Group and Hangzhou EZVIZ Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou EZVIZ Network and Guangzhou Automobile 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 Guangzhou Automobile Group are associated (or correlated) with Hangzhou EZVIZ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou EZVIZ Network has no effect on the direction of Guangzhou Automobile i.e., Guangzhou Automobile and Hangzhou EZVIZ go up and down completely randomly.
Pair Corralation between Guangzhou Automobile and Hangzhou EZVIZ
Assuming the 90 days trading horizon Guangzhou Automobile Group is expected to under-perform the Hangzhou EZVIZ. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Automobile Group is 1.73 times less risky than Hangzhou EZVIZ. The stock trades about -0.01 of its potential returns per unit of risk. The Hangzhou EZVIZ Network is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,020 in Hangzhou EZVIZ Network on September 26, 2024 and sell it today you would earn a total of 1,021 from holding Hangzhou EZVIZ Network or generate 50.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Automobile Group vs. Hangzhou EZVIZ Network
Performance |
| Timeline |
| Guangzhou Automobile |
| Hangzhou EZVIZ Network |
Guangzhou Automobile and Hangzhou EZVIZ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Automobile and Hangzhou EZVIZ
The main advantage of trading using opposite Guangzhou Automobile and Hangzhou EZVIZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Automobile position performs unexpectedly, Hangzhou EZVIZ 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 EZVIZ will offset losses from the drop in Hangzhou EZVIZ's long position.| Guangzhou Automobile vs. Sanbo Hospital Management | Guangzhou Automobile vs. Road Environment Technology | Guangzhou Automobile vs. Shandong Hi Speed RoadBridge | Guangzhou Automobile vs. Mingchen Health Co |
| Hangzhou EZVIZ vs. Nanxing Furniture Machinery | Hangzhou EZVIZ vs. Guangzhou Automobile Group | Hangzhou EZVIZ vs. Senci Electric Machinery | Hangzhou EZVIZ vs. Lutian Machinery Co |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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