Correlation Between New China and Hangzhou Weiguang
Specify exactly 2 symbols:
By analyzing existing cross correlation between New China Life and Hangzhou Weiguang Electronic, you can compare the effects of market volatilities on New China and Hangzhou Weiguang 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 New China with a short position of Hangzhou Weiguang. Check out your portfolio center. Please also check ongoing floating volatility patterns of New China and Hangzhou Weiguang.
Diversification Opportunities for New China and Hangzhou Weiguang
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between New and Hangzhou is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding New China Life and Hangzhou Weiguang Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Weiguang and New China 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 New China Life are associated (or correlated) with Hangzhou Weiguang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Weiguang has no effect on the direction of New China i.e., New China and Hangzhou Weiguang go up and down completely randomly.
Pair Corralation between New China and Hangzhou Weiguang
Assuming the 90 days trading horizon New China is expected to generate 6.02 times less return on investment than Hangzhou Weiguang. In addition to that, New China is 1.36 times more volatile than Hangzhou Weiguang Electronic. It trades about 0.03 of its total potential returns per unit of risk. Hangzhou Weiguang Electronic is currently generating about 0.23 per unit of volatility. If you would invest 2,195 in Hangzhou Weiguang Electronic on September 5, 2024 and sell it today you would earn a total of 305.00 from holding Hangzhou Weiguang Electronic or generate 13.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
New China Life vs. Hangzhou Weiguang Electronic
Performance |
| Timeline |
| New China Life |
| Hangzhou Weiguang |
New China and Hangzhou Weiguang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New China and Hangzhou Weiguang
The main advantage of trading using opposite New China and Hangzhou Weiguang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New China position performs unexpectedly, Hangzhou Weiguang 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 Weiguang will offset losses from the drop in Hangzhou Weiguang's long position.| New China vs. Xiwang Foodstuffs Co | New China vs. Unigroup Guoxin Microelectronics | New China vs. Puyang Huicheng Electronic | New China vs. Youyou Foods Co |
| Hangzhou Weiguang vs. New China Life | Hangzhou Weiguang vs. Ming Yang Smart | Hangzhou Weiguang vs. 159681 | Hangzhou Weiguang vs. 159005 |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Commodity Directory Find actively traded commodities issued by global exchanges |