Correlation Between Hangzhou Arcvideo and Suzhou Xingye
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By analyzing existing cross correlation between Hangzhou Arcvideo Technology and Suzhou Xingye Material, you can compare the effects of market volatilities on Hangzhou Arcvideo and Suzhou Xingye 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 Suzhou Xingye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Arcvideo and Suzhou Xingye.
Diversification Opportunities for Hangzhou Arcvideo and Suzhou Xingye
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hangzhou and Suzhou is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Arcvideo Technology and Suzhou Xingye Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Xingye Material 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 Suzhou Xingye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Xingye Material has no effect on the direction of Hangzhou Arcvideo i.e., Hangzhou Arcvideo and Suzhou Xingye go up and down completely randomly.
Pair Corralation between Hangzhou Arcvideo and Suzhou Xingye
Assuming the 90 days trading horizon Hangzhou Arcvideo Technology is expected to generate 1.49 times more return on investment than Suzhou Xingye. However, Hangzhou Arcvideo is 1.49 times more volatile than Suzhou Xingye Material. It trades about 0.01 of its potential returns per unit of risk. Suzhou Xingye Material is currently generating about -0.01 per unit of risk. If you would invest 2,988 in Hangzhou Arcvideo Technology on October 16, 2024 and sell it today you would lose (434.00) from holding Hangzhou Arcvideo Technology or give up 14.52% 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. Suzhou Xingye Material
Performance |
| Timeline |
| Hangzhou Arcvideo |
| Suzhou Xingye Material |
Hangzhou Arcvideo and Suzhou Xingye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Arcvideo and Suzhou Xingye
The main advantage of trading using opposite Hangzhou Arcvideo and Suzhou Xingye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Arcvideo position performs unexpectedly, Suzhou Xingye 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 Suzhou Xingye will offset losses from the drop in Suzhou Xingye's long position.| Hangzhou Arcvideo vs. Guangzhou Zhujiang Brewery | Hangzhou Arcvideo vs. Beijing Yanjing Brewery | Hangzhou Arcvideo vs. Eastroc Beverage Group | Hangzhou Arcvideo vs. Xinjiang Baodi Mining |
| Suzhou Xingye vs. Zhongshan Public Utilities | Suzhou Xingye vs. China Satellite Communications | Suzhou Xingye vs. Hangzhou Arcvideo Technology | Suzhou Xingye vs. Tianjin Capital Environmental |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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