Correlation Between Shanghai Putailai and Hangzhou EZVIZ
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By analyzing existing cross correlation between Shanghai Putailai New and Hangzhou EZVIZ Network, you can compare the effects of market volatilities on Shanghai Putailai and Hangzhou EZVIZ 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 Shanghai Putailai with a short position of Hangzhou EZVIZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Putailai and Hangzhou EZVIZ.
Diversification Opportunities for Shanghai Putailai and Hangzhou EZVIZ
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Hangzhou is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Putailai New and Hangzhou EZVIZ Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou EZVIZ Network and Shanghai Putailai 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 Shanghai Putailai New are associated (or correlated) with Hangzhou EZVIZ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou EZVIZ Network has no effect on the direction of Shanghai Putailai i.e., Shanghai Putailai and Hangzhou EZVIZ go up and down completely randomly.
Pair Corralation between Shanghai Putailai and Hangzhou EZVIZ
Assuming the 90 days trading horizon Shanghai Putailai New is expected to generate 1.17 times more return on investment than Hangzhou EZVIZ. However, Shanghai Putailai is 1.17 times more volatile than Hangzhou EZVIZ Network. It trades about 0.05 of its potential returns per unit of risk. Hangzhou EZVIZ Network is currently generating about -0.02 per unit of risk. If you would invest 1,419 in Shanghai Putailai New on September 27, 2024 and sell it today you would earn a total of 230.00 from holding Shanghai Putailai New or generate 16.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Putailai New vs. Hangzhou EZVIZ Network
Performance |
| Timeline |
| Shanghai Putailai New |
| Hangzhou EZVIZ Network |
Shanghai Putailai and Hangzhou EZVIZ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Putailai and Hangzhou EZVIZ
The main advantage of trading using opposite Shanghai Putailai and Hangzhou EZVIZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Putailai position performs unexpectedly, Hangzhou EZVIZ 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 EZVIZ will offset losses from the drop in Hangzhou EZVIZ's long position.| Shanghai Putailai vs. Zijin Mining Group | Shanghai Putailai vs. Baoshan Iron Steel | Shanghai Putailai vs. Shandong Gold Mining | Shanghai Putailai vs. Rongsheng Petrochemical Co |
| Hangzhou EZVIZ vs. Hubeiyichang Transportation Group | Hangzhou EZVIZ vs. Hengli Petrochemical Co | Hangzhou EZVIZ vs. Sichuan Fulin Transportation | Hangzhou EZVIZ vs. RoadMain T 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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