Correlation Between China State and Hangzhou Coco
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By analyzing existing cross correlation between China State Construction and Hangzhou Coco Healthcare, you can compare the effects of market volatilities on China State and Hangzhou Coco 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 China State with a short position of Hangzhou Coco. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Hangzhou Coco.
Diversification Opportunities for China State and Hangzhou Coco
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Hangzhou is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction and Hangzhou Coco Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Coco Healthcare and China State 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 China State Construction are associated (or correlated) with Hangzhou Coco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Coco Healthcare has no effect on the direction of China State i.e., China State and Hangzhou Coco go up and down completely randomly.
Pair Corralation between China State and Hangzhou Coco
Assuming the 90 days trading horizon China State is expected to generate 1.3 times less return on investment than Hangzhou Coco. But when comparing it to its historical volatility, China State Construction is 1.18 times less risky than Hangzhou Coco. It trades about 0.16 of its potential returns per unit of risk. Hangzhou Coco Healthcare is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 726.00 in Hangzhou Coco Healthcare on September 12, 2024 and sell it today you would earn a total of 269.00 from holding Hangzhou Coco Healthcare or generate 37.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Hangzhou Coco Healthcare
Performance |
| Timeline |
| China State Construction |
| Hangzhou Coco Healthcare |
China State and Hangzhou Coco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Hangzhou Coco
The main advantage of trading using opposite China State and Hangzhou Coco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State position performs unexpectedly, Hangzhou Coco 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 Coco will offset losses from the drop in Hangzhou Coco's long position.| China State vs. Hangzhou Coco Healthcare | China State vs. Zhejiang Qianjiang Motorcycle | China State vs. Anhui Jianghuai Automobile | China State vs. Ningbo Fangzheng Automobile |
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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.
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