Correlation Between Hygon Information and Guangdong Xiongsu
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By analyzing existing cross correlation between Hygon Information Technology and Guangdong Xiongsu Technology, you can compare the effects of market volatilities on Hygon Information and Guangdong Xiongsu 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 Hygon Information with a short position of Guangdong Xiongsu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hygon Information and Guangdong Xiongsu.
Diversification Opportunities for Hygon Information and Guangdong Xiongsu
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hygon and Guangdong is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Hygon Information Technology and Guangdong Xiongsu Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Xiongsu and Hygon Information 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 Hygon Information Technology are associated (or correlated) with Guangdong Xiongsu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Xiongsu has no effect on the direction of Hygon Information i.e., Hygon Information and Guangdong Xiongsu go up and down completely randomly.
Pair Corralation between Hygon Information and Guangdong Xiongsu
Assuming the 90 days trading horizon Hygon Information Technology is expected to generate 0.93 times more return on investment than Guangdong Xiongsu. However, Hygon Information Technology is 1.08 times less risky than Guangdong Xiongsu. It trades about 0.2 of its potential returns per unit of risk. Guangdong Xiongsu Technology is currently generating about 0.1 per unit of risk. If you would invest 7,473 in Hygon Information Technology on October 18, 2024 and sell it today you would earn a total of 7,247 from holding Hygon Information Technology or generate 96.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hygon Information Technology vs. Guangdong Xiongsu Technology
Performance |
| Timeline |
| Hygon Information |
| Guangdong Xiongsu |
Hygon Information and Guangdong Xiongsu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hygon Information and Guangdong Xiongsu
The main advantage of trading using opposite Hygon Information and Guangdong Xiongsu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hygon Information position performs unexpectedly, Guangdong Xiongsu 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 Guangdong Xiongsu will offset losses from the drop in Guangdong Xiongsu's long position.| Hygon Information vs. Tibet Huayu Mining | Hygon Information vs. Shenzhen Silver Basis | Hygon Information vs. Guocheng Mining Co | Hygon Information vs. Zijin Mining Group |
| Guangdong Xiongsu vs. Kangping Technology Co | Guangdong Xiongsu vs. Hygon Information Technology | Guangdong Xiongsu vs. Shenzhen SDG Information | Guangdong Xiongsu vs. ButOne Information Corp |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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