Correlation Between Xiamen Goldenhome and Hangzhou Weiguang
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By analyzing existing cross correlation between Xiamen Goldenhome Co and Hangzhou Weiguang Electronic, you can compare the effects of market volatilities on Xiamen Goldenhome and Hangzhou Weiguang 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 Xiamen Goldenhome with a short position of Hangzhou Weiguang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Goldenhome and Hangzhou Weiguang.
Diversification Opportunities for Xiamen Goldenhome and Hangzhou Weiguang
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xiamen and Hangzhou is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Goldenhome Co and Hangzhou Weiguang Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Weiguang and Xiamen Goldenhome 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 Xiamen Goldenhome Co are associated (or correlated) with Hangzhou Weiguang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Weiguang has no effect on the direction of Xiamen Goldenhome i.e., Xiamen Goldenhome and Hangzhou Weiguang go up and down completely randomly.
Pair Corralation between Xiamen Goldenhome and Hangzhou Weiguang
Assuming the 90 days trading horizon Xiamen Goldenhome Co is expected to under-perform the Hangzhou Weiguang. In addition to that, Xiamen Goldenhome is 1.1 times more volatile than Hangzhou Weiguang Electronic. It trades about -0.03 of its total potential returns per unit of risk. Hangzhou Weiguang Electronic is currently generating about 0.0 per unit of volatility. If you would invest 2,622 in Hangzhou Weiguang Electronic on October 9, 2024 and sell it today you would lose (344.00) from holding Hangzhou Weiguang Electronic or give up 13.12% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Xiamen Goldenhome Co vs. Hangzhou Weiguang Electronic
Performance |
Timeline |
Xiamen Goldenhome |
Hangzhou Weiguang |
Xiamen Goldenhome and Hangzhou Weiguang Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xiamen Goldenhome and Hangzhou Weiguang
The main advantage of trading using opposite Xiamen Goldenhome and Hangzhou Weiguang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Goldenhome position performs unexpectedly, Hangzhou Weiguang 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 Weiguang will offset losses from the drop in Hangzhou Weiguang's long position.Xiamen Goldenhome vs. Kweichow Moutai Co | Xiamen Goldenhome vs. NAURA Technology Group | Xiamen Goldenhome vs. Zhejiang Orient Gene | Xiamen Goldenhome vs. APT Medical |
Hangzhou Weiguang vs. Kweichow Moutai Co | Hangzhou Weiguang vs. Contemporary Amperex Technology | Hangzhou Weiguang vs. G bits Network Technology | Hangzhou Weiguang vs. Beijing Roborock 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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