Correlation Between Industrial and Hangzhou Guotai
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By analyzing existing cross correlation between Industrial and Commercial and Hangzhou Guotai Environmental, you can compare the effects of market volatilities on Industrial and Hangzhou Guotai 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 Guotai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Hangzhou Guotai.
Diversification Opportunities for Industrial and Hangzhou Guotai
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Industrial and Hangzhou is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Hangzhou Guotai Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Guotai Envi 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 Guotai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Guotai Envi has no effect on the direction of Industrial i.e., Industrial and Hangzhou Guotai go up and down completely randomly.
Pair Corralation between Industrial and Hangzhou Guotai
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.37 times more return on investment than Hangzhou Guotai. However, Industrial and Commercial is 2.68 times less risky than Hangzhou Guotai. It trades about 0.09 of its potential returns per unit of risk. Hangzhou Guotai Environmental is currently generating about 0.01 per unit of risk. If you would invest 427.00 in Industrial and Commercial on October 29, 2024 and sell it today you would earn a total of 240.00 from holding Industrial and Commercial or generate 56.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Hangzhou Guotai Environmental
Performance |
| Timeline |
| Industrial and Commercial |
| Hangzhou Guotai Envi |
Industrial and Hangzhou Guotai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Hangzhou Guotai
The main advantage of trading using opposite Industrial and Hangzhou Guotai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Hangzhou Guotai 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 Guotai will offset losses from the drop in Hangzhou Guotai's long position.| Industrial vs. Zhejiang JIULI Hi tech | Industrial vs. Fiberhome Telecommunication Technologies | Industrial vs. Beingmate Baby Child | Industrial vs. FSPG Hi Tech Co |
| Hangzhou Guotai vs. Guangzhou Zhujiang Brewery | Hangzhou Guotai vs. Chengdu Xingrong Investment | Hangzhou Guotai vs. Ningbo Fangzheng Automobile | Hangzhou Guotai vs. Xiamen Insight Investment |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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