Correlation Between China State and Hang Xiao
Specify exactly 2 symbols:
By analyzing existing cross correlation between China State Construction and Hang Xiao Steel, you can compare the effects of market volatilities on China State and Hang Xiao 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 Hang Xiao. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Hang Xiao.
Diversification Opportunities for China State and Hang Xiao
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Hang is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction and Hang Xiao Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hang Xiao Steel 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 Hang Xiao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hang Xiao Steel has no effect on the direction of China State i.e., China State and Hang Xiao go up and down completely randomly.
Pair Corralation between China State and Hang Xiao
Assuming the 90 days trading horizon China State Construction is expected to under-perform the Hang Xiao. But the stock apears to be less risky and, when comparing its historical volatility, China State Construction is 1.09 times less risky than Hang Xiao. The stock trades about -0.03 of its potential returns per unit of risk. The Hang Xiao Steel is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 275.00 in Hang Xiao Steel on August 30, 2024 and sell it today you would lose (1.00) from holding Hang Xiao Steel or give up 0.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Hang Xiao Steel
Performance |
| Timeline |
| China State Construction |
| Hang Xiao Steel |
China State and Hang Xiao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Hang Xiao
The main advantage of trading using opposite China State and Hang Xiao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State position performs unexpectedly, Hang Xiao 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 Hang Xiao will offset losses from the drop in Hang Xiao's long position.| China State vs. Hangzhou Gaoxin Rubber | China State vs. Orinko Advanced Plastics | China State vs. De Rucci Healthy | China State vs. Everjoy Health Group |
| Hang Xiao vs. Biwin Storage Technology | Hang Xiao vs. PetroChina Co Ltd | Hang Xiao vs. Industrial and Commercial | Hang Xiao vs. China Construction Bank |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |