Correlation Between Industrial and Hangzhou Weiguang
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By analyzing existing cross correlation between Industrial and Commercial and Hangzhou Weiguang Electronic, you can compare the effects of market volatilities on Industrial 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 Industrial with a short position of Hangzhou Weiguang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Hangzhou Weiguang.
Diversification Opportunities for Industrial and Hangzhou Weiguang
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Industrial and Hangzhou is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Hangzhou Weiguang Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Weiguang and Industrial 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 Industrial and Commercial 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 Industrial i.e., Industrial and Hangzhou Weiguang go up and down completely randomly.
Pair Corralation between Industrial and Hangzhou Weiguang
Assuming the 90 days trading horizon Industrial is expected to generate 36.38 times less return on investment than Hangzhou Weiguang. But when comparing it to its historical volatility, Industrial and Commercial is 1.96 times less risky than Hangzhou Weiguang. It trades about 0.01 of its potential returns per unit of risk. Hangzhou Weiguang Electronic is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,817 in Hangzhou Weiguang Electronic on August 26, 2024 and sell it today you would earn a total of 419.00 from holding Hangzhou Weiguang Electronic or generate 23.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Hangzhou Weiguang Electronic
Performance |
| Timeline |
| Industrial and Commercial |
| Hangzhou Weiguang |
Industrial and Hangzhou Weiguang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Hangzhou Weiguang
The main advantage of trading using opposite Industrial and Hangzhou Weiguang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial 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.| Industrial vs. Zhuhai Comleader Information | Industrial vs. Hygon Information Technology | Industrial vs. GigaDevice SemiconductorBeiji | Industrial vs. ZJBC Information Technology |
| Hangzhou Weiguang vs. Industrial and Commercial | Hangzhou Weiguang vs. China Construction Bank | Hangzhou Weiguang vs. Agricultural Bank of | Hangzhou Weiguang vs. Bank of China |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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