Correlation Between Hangzhou Arcvideo and GRG Banking
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By analyzing existing cross correlation between Hangzhou Arcvideo Technology and GRG Banking Equipment, you can compare the effects of market volatilities on Hangzhou Arcvideo 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 Hangzhou Arcvideo with a short position of GRG Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Arcvideo and GRG Banking.
Diversification Opportunities for Hangzhou Arcvideo and GRG Banking
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hangzhou and GRG is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Arcvideo Technology 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 Hangzhou Arcvideo 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 Hangzhou Arcvideo Technology 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 Hangzhou Arcvideo i.e., Hangzhou Arcvideo and GRG Banking go up and down completely randomly.
Pair Corralation between Hangzhou Arcvideo and GRG Banking
Assuming the 90 days trading horizon Hangzhou Arcvideo Technology is expected to under-perform the GRG Banking. In addition to that, Hangzhou Arcvideo is 1.68 times more volatile than GRG Banking Equipment. It trades about -0.51 of its total potential returns per unit of risk. GRG Banking Equipment is currently generating about -0.48 per unit of volatility. If you would invest 1,310 in GRG Banking Equipment on October 11, 2024 and sell it today you would lose (235.00) from holding GRG Banking Equipment or give up 17.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Arcvideo Technology vs. GRG Banking Equipment
Performance |
| Timeline |
| Hangzhou Arcvideo |
| GRG Banking Equipment |
Hangzhou Arcvideo and GRG Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Arcvideo and GRG Banking
The main advantage of trading using opposite Hangzhou Arcvideo and GRG Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Arcvideo 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.| Hangzhou Arcvideo vs. Bingo Software Co | Hangzhou Arcvideo vs. East Money Information | Hangzhou Arcvideo vs. Guangzhou Restaurants Group | Hangzhou Arcvideo vs. Hainan Airlines Co |
| GRG Banking vs. Zhejiang Yongjin Metal | GRG Banking vs. Shandong Hongchuang Aluminum | GRG Banking vs. Eyebright Medical Technology | GRG Banking vs. CITIC Metal 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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