Correlation Between China International and Hangzhou Pinming
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By analyzing existing cross correlation between China International Capital and Hangzhou Pinming Software, you can compare the effects of market volatilities on China International and Hangzhou Pinming 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 International with a short position of Hangzhou Pinming. Check out your portfolio center. Please also check ongoing floating volatility patterns of China International and Hangzhou Pinming.
Diversification Opportunities for China International and Hangzhou Pinming
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Hangzhou is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding China International Capital and Hangzhou Pinming Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Pinming Software and China International 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 International Capital are associated (or correlated) with Hangzhou Pinming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Pinming Software has no effect on the direction of China International i.e., China International and Hangzhou Pinming go up and down completely randomly.
Pair Corralation between China International and Hangzhou Pinming
Assuming the 90 days trading horizon China International is expected to generate 6.59 times less return on investment than Hangzhou Pinming. But when comparing it to its historical volatility, China International Capital is 1.4 times less risky than Hangzhou Pinming. It trades about 0.02 of its potential returns per unit of risk. Hangzhou Pinming Software is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,646 in Hangzhou Pinming Software on September 1, 2024 and sell it today you would earn a total of 169.00 from holding Hangzhou Pinming Software or generate 6.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China International Capital vs. Hangzhou Pinming Software
Performance |
| Timeline |
| China International |
| Hangzhou Pinming Software |
China International and Hangzhou Pinming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China International and Hangzhou Pinming
The main advantage of trading using opposite China International and Hangzhou Pinming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China International position performs unexpectedly, Hangzhou Pinming 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 Pinming will offset losses from the drop in Hangzhou Pinming's long position.| China International vs. Offshore Oil Engineering | China International vs. Guocheng Mining Co | China International vs. Zhengzhou Coal Mining | China International vs. Xiandai Investment Co |
| Hangzhou Pinming vs. Ming Yang Smart | Hangzhou Pinming vs. 159681 | Hangzhou Pinming vs. 159005 | Hangzhou Pinming vs. Loctek Ergonomic Technology |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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