Correlation Between Hangzhou Arcvideo and Hainan HNA
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By analyzing existing cross correlation between Hangzhou Arcvideo Technology and Hainan HNA Infrastructure, you can compare the effects of market volatilities on Hangzhou Arcvideo and Hainan HNA 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 Hainan HNA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Arcvideo and Hainan HNA.
Diversification Opportunities for Hangzhou Arcvideo and Hainan HNA
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hangzhou and Hainan is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Arcvideo Technology and Hainan HNA Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan HNA Infrastructure 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 Hainan HNA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan HNA Infrastructure has no effect on the direction of Hangzhou Arcvideo i.e., Hangzhou Arcvideo and Hainan HNA go up and down completely randomly.
Pair Corralation between Hangzhou Arcvideo and Hainan HNA
Assuming the 90 days trading horizon Hangzhou Arcvideo Technology is expected to under-perform the Hainan HNA. In addition to that, Hangzhou Arcvideo is 1.82 times more volatile than Hainan HNA Infrastructure. It trades about -0.03 of its total potential returns per unit of risk. Hainan HNA Infrastructure is currently generating about -0.04 per unit of volatility. If you would invest 384.00 in Hainan HNA Infrastructure on October 30, 2024 and sell it today you would lose (19.00) from holding Hainan HNA Infrastructure or give up 4.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Arcvideo Technology vs. Hainan HNA Infrastructure
Performance |
| Timeline |
| Hangzhou Arcvideo |
| Hainan HNA Infrastructure |
Hangzhou Arcvideo and Hainan HNA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Arcvideo and Hainan HNA
The main advantage of trading using opposite Hangzhou Arcvideo and Hainan HNA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Arcvideo position performs unexpectedly, Hainan HNA 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 Hainan HNA will offset losses from the drop in Hainan HNA's long position.| Hangzhou Arcvideo vs. Industrial and Commercial | Hangzhou Arcvideo vs. Agricultural Bank of | Hangzhou Arcvideo vs. China Construction Bank | Hangzhou Arcvideo vs. Bank of China |
| Hainan HNA vs. Ingenic Semiconductor | Hainan HNA vs. Zhongfu Information | Hainan HNA vs. East Money Information | Hainan HNA vs. Hygon Information 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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