Correlation Between Hengdian Entertainment and GRG Banking
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By analyzing existing cross correlation between Hengdian Entertainment Co and GRG Banking Equipment, you can compare the effects of market volatilities on Hengdian Entertainment and GRG Banking 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 Hengdian Entertainment with a short position of GRG Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengdian Entertainment and GRG Banking.
Diversification Opportunities for Hengdian Entertainment and GRG Banking
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hengdian and GRG is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Hengdian Entertainment Co and GRG Banking Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRG Banking Equipment and Hengdian Entertainment 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 Hengdian Entertainment Co are associated (or correlated) with GRG Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRG Banking Equipment has no effect on the direction of Hengdian Entertainment i.e., Hengdian Entertainment and GRG Banking go up and down completely randomly.
Pair Corralation between Hengdian Entertainment and GRG Banking
Assuming the 90 days trading horizon Hengdian Entertainment is expected to generate 1.81 times less return on investment than GRG Banking. In addition to that, Hengdian Entertainment is 1.36 times more volatile than GRG Banking Equipment. It trades about 0.01 of its total potential returns per unit of risk. GRG Banking Equipment is currently generating about 0.02 per unit of volatility. If you would invest 963.00 in GRG Banking Equipment on October 7, 2024 and sell it today you would earn a total of 127.00 from holding GRG Banking Equipment or generate 13.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengdian Entertainment Co vs. GRG Banking Equipment
Performance |
| Timeline |
| Hengdian Entertainment |
| GRG Banking Equipment |
Hengdian Entertainment and GRG Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengdian Entertainment and GRG Banking
The main advantage of trading using opposite Hengdian Entertainment and GRG Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengdian Entertainment position performs unexpectedly, GRG Banking 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 GRG Banking will offset losses from the drop in GRG Banking's long position.| Hengdian Entertainment vs. China Life Insurance | Hengdian Entertainment vs. Cinda Securities Co | Hengdian Entertainment vs. Piotech Inc A | Hengdian Entertainment vs. Dongxing Sec Co |
| GRG Banking vs. Elite Color Environmental | GRG Banking vs. Shenzhen MYS Environmental | GRG Banking vs. Dynagreen Environmental Protection | GRG Banking vs. Easyhome New Retail |
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 Stocks Directory module to find actively traded stocks across global markets.
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