Correlation Between HUAQIN TECHNOLOGY and Gansu Yasheng
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By analyzing existing cross correlation between HUAQIN TECHNOLOGY LTD and Gansu Yasheng Industrial, you can compare the effects of market volatilities on HUAQIN TECHNOLOGY and Gansu Yasheng 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 HUAQIN TECHNOLOGY with a short position of Gansu Yasheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUAQIN TECHNOLOGY and Gansu Yasheng.
Diversification Opportunities for HUAQIN TECHNOLOGY and Gansu Yasheng
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between HUAQIN and Gansu is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding HUAQIN TECHNOLOGY LTD and Gansu Yasheng Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Yasheng Industrial and HUAQIN TECHNOLOGY 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 HUAQIN TECHNOLOGY LTD are associated (or correlated) with Gansu Yasheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Yasheng Industrial has no effect on the direction of HUAQIN TECHNOLOGY i.e., HUAQIN TECHNOLOGY and Gansu Yasheng go up and down completely randomly.
Pair Corralation between HUAQIN TECHNOLOGY and Gansu Yasheng
Assuming the 90 days trading horizon HUAQIN TECHNOLOGY is expected to generate 1.21 times less return on investment than Gansu Yasheng. In addition to that, HUAQIN TECHNOLOGY is 1.22 times more volatile than Gansu Yasheng Industrial. It trades about 0.05 of its total potential returns per unit of risk. Gansu Yasheng Industrial is currently generating about 0.07 per unit of volatility. If you would invest 291.00 in Gansu Yasheng Industrial on September 5, 2024 and sell it today you would earn a total of 19.00 from holding Gansu Yasheng Industrial or generate 6.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUAQIN TECHNOLOGY LTD vs. Gansu Yasheng Industrial
Performance |
| Timeline |
| HUAQIN TECHNOLOGY LTD |
| Gansu Yasheng Industrial |
HUAQIN TECHNOLOGY and Gansu Yasheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUAQIN TECHNOLOGY and Gansu Yasheng
The main advantage of trading using opposite HUAQIN TECHNOLOGY and Gansu Yasheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUAQIN TECHNOLOGY position performs unexpectedly, Gansu Yasheng 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 Gansu Yasheng will offset losses from the drop in Gansu Yasheng's long position.| HUAQIN TECHNOLOGY vs. Shanghai Yanpu Metal | HUAQIN TECHNOLOGY vs. China Aluminum International | HUAQIN TECHNOLOGY vs. Aluminum Corp of | HUAQIN TECHNOLOGY vs. Dhc Software Co |
| Gansu Yasheng vs. Tianshui Huatian Technology | Gansu Yasheng vs. Sino Platinum Metals Co | Gansu Yasheng vs. HUAQIN TECHNOLOGY LTD | Gansu Yasheng vs. Dhc Software Co |
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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