Correlation Between Zhongtong Guomai and Hangzhou Prevail
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Hangzhou Prevail Optoelectronic, you can compare the effects of market volatilities on Zhongtong Guomai and Hangzhou Prevail 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 Zhongtong Guomai with a short position of Hangzhou Prevail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Hangzhou Prevail.
Diversification Opportunities for Zhongtong Guomai and Hangzhou Prevail
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongtong and Hangzhou is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication and Hangzhou Prevail Optoelectroni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Prevail Opt and Zhongtong Guomai 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 Zhongtong Guomai Communication are associated (or correlated) with Hangzhou Prevail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Prevail Opt has no effect on the direction of Zhongtong Guomai i.e., Zhongtong Guomai and Hangzhou Prevail go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Hangzhou Prevail
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to generate 0.88 times more return on investment than Hangzhou Prevail. However, Zhongtong Guomai Communication is 1.14 times less risky than Hangzhou Prevail. It trades about 0.01 of its potential returns per unit of risk. Hangzhou Prevail Optoelectronic is currently generating about 0.0 per unit of risk. If you would invest 1,246 in Zhongtong Guomai Communication on September 3, 2024 and sell it today you would lose (125.00) from holding Zhongtong Guomai Communication or give up 10.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. Hangzhou Prevail Optoelectroni
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Hangzhou Prevail Opt |
Zhongtong Guomai and Hangzhou Prevail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Hangzhou Prevail
The main advantage of trading using opposite Zhongtong Guomai and Hangzhou Prevail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai position performs unexpectedly, Hangzhou Prevail 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 Prevail will offset losses from the drop in Hangzhou Prevail's long position.| Zhongtong Guomai vs. Agricultural Bank of | Zhongtong Guomai vs. China Construction Bank | Zhongtong Guomai vs. Postal Savings Bank | Zhongtong Guomai vs. Bank of Communications |
| Hangzhou Prevail vs. Zhongtong Guomai Communication | Hangzhou Prevail vs. Sunwave Communications Co | Hangzhou Prevail vs. State Grid InformationCommunication | Hangzhou Prevail vs. Eastroc Beverage Group |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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