Correlation Between Piotech and Hangzhou Weiguang
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By analyzing existing cross correlation between Piotech Inc A and Hangzhou Weiguang Electronic, you can compare the effects of market volatilities on Piotech and Hangzhou Weiguang 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 Piotech with a short position of Hangzhou Weiguang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piotech and Hangzhou Weiguang.
Diversification Opportunities for Piotech and Hangzhou Weiguang
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Piotech and Hangzhou is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Piotech Inc A and Hangzhou Weiguang Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Weiguang and Piotech 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 Piotech Inc A are associated (or correlated) with Hangzhou Weiguang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Weiguang has no effect on the direction of Piotech i.e., Piotech and Hangzhou Weiguang go up and down completely randomly.
Pair Corralation between Piotech and Hangzhou Weiguang
Assuming the 90 days trading horizon Piotech Inc A is expected to generate 1.68 times more return on investment than Hangzhou Weiguang. However, Piotech is 1.68 times more volatile than Hangzhou Weiguang Electronic. It trades about 0.21 of its potential returns per unit of risk. Hangzhou Weiguang Electronic is currently generating about 0.2 per unit of risk. If you would invest 16,790 in Piotech Inc A on September 3, 2024 and sell it today you would earn a total of 3,141 from holding Piotech Inc A or generate 18.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Piotech Inc A vs. Hangzhou Weiguang Electronic
Performance |
| Timeline |
| Piotech Inc A |
| Hangzhou Weiguang |
Piotech and Hangzhou Weiguang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piotech and Hangzhou Weiguang
The main advantage of trading using opposite Piotech and Hangzhou Weiguang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piotech position performs unexpectedly, Hangzhou Weiguang 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 Weiguang will offset losses from the drop in Hangzhou Weiguang's long position.| Piotech vs. Westone Information Industry | Piotech vs. Shandong Mining Machinery | Piotech vs. Jiangxi Naipu Mining | Piotech vs. Air China Ltd |
| Hangzhou Weiguang vs. Cultural Investment Holdings | Hangzhou Weiguang vs. Gome Telecom Equipment | Hangzhou Weiguang vs. Bus Online Co | Hangzhou Weiguang vs. Holitech Technology 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 CEOs Directory module to screen CEOs from public companies around the world.
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