Correlation Between Hangzhou Pinming and China State
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By analyzing existing cross correlation between Hangzhou Pinming Software and China State Construction, you can compare the effects of market volatilities on Hangzhou Pinming and China State 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 China State. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Pinming and China State.
Diversification Opportunities for Hangzhou Pinming and China State
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hangzhou and China is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Pinming Software and China State Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China State Construction 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 China State. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China State Construction has no effect on the direction of Hangzhou Pinming i.e., Hangzhou Pinming and China State go up and down completely randomly.
Pair Corralation between Hangzhou Pinming and China State
Assuming the 90 days trading horizon Hangzhou Pinming Software is expected to generate 2.96 times more return on investment than China State. However, Hangzhou Pinming is 2.96 times more volatile than China State Construction. It trades about 0.31 of its potential returns per unit of risk. China State Construction is currently generating about -0.11 per unit of risk. If you would invest 2,566 in Hangzhou Pinming Software on November 27, 2024 and sell it today you would earn a total of 394.00 from holding Hangzhou Pinming Software or generate 15.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Pinming Software vs. China State Construction
Performance |
| Timeline |
| Hangzhou Pinming Software |
| China State Construction |
Hangzhou Pinming and China State Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Pinming and China State
The main advantage of trading using opposite Hangzhou Pinming and China State positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Pinming position performs unexpectedly, China State 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 China State will offset losses from the drop in China State's long position.| Hangzhou Pinming vs. Holitech Technology Co | Hangzhou Pinming vs. Gome Telecom Equipment | Hangzhou Pinming vs. Cultural Investment Holdings | Hangzhou Pinming vs. Danhua Chemical Technology |
| China State vs. TianJin 712 Communication | China State vs. INKON Life Technology | China State vs. Juneyao Airlines | China State vs. Elec Tech International 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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