Correlation Between Hangzhou Pinming and Xilong Chemical
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By analyzing existing cross correlation between Hangzhou Pinming Software and Xilong Chemical Co, you can compare the effects of market volatilities on Hangzhou Pinming and Xilong Chemical 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 Pinming with a short position of Xilong Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Pinming and Xilong Chemical.
Diversification Opportunities for Hangzhou Pinming and Xilong Chemical
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hangzhou and Xilong is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Pinming Software and Xilong Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xilong Chemical and Hangzhou Pinming 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 Pinming Software are associated (or correlated) with Xilong Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xilong Chemical has no effect on the direction of Hangzhou Pinming i.e., Hangzhou Pinming and Xilong Chemical go up and down completely randomly.
Pair Corralation between Hangzhou Pinming and Xilong Chemical
Assuming the 90 days trading horizon Hangzhou Pinming Software is expected to generate 0.97 times more return on investment than Xilong Chemical. However, Hangzhou Pinming Software is 1.04 times less risky than Xilong Chemical. It trades about 0.04 of its potential returns per unit of risk. Xilong Chemical Co is currently generating about 0.03 per unit of risk. If you would invest 2,054 in Hangzhou Pinming Software on September 5, 2024 and sell it today you would earn a total of 839.00 from holding Hangzhou Pinming Software or generate 40.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Pinming Software vs. Xilong Chemical Co
Performance |
| Timeline |
| Hangzhou Pinming Software |
| Xilong Chemical |
Hangzhou Pinming and Xilong Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Pinming and Xilong Chemical
The main advantage of trading using opposite Hangzhou Pinming and Xilong Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Pinming position performs unexpectedly, Xilong Chemical 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 Xilong Chemical will offset losses from the drop in Xilong Chemical's long position.| Hangzhou Pinming vs. BYD Co Ltd | Hangzhou Pinming vs. China Mobile Limited | Hangzhou Pinming vs. Agricultural Bank of | Hangzhou Pinming vs. Industrial and Commercial |
| Xilong Chemical vs. Jinling Hotel Corp | Xilong Chemical vs. Guangzhou KingTeller Technology | Xilong Chemical vs. Hangzhou Pinming Software | Xilong Chemical vs. XinJiang GuoTong Pipeline |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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