Correlation Between Hangzhou Pinming and Shanghai Rongtai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hangzhou Pinming Software and Shanghai Rongtai Health, you can compare the effects of market volatilities on Hangzhou Pinming and Shanghai Rongtai 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 Shanghai Rongtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Pinming and Shanghai Rongtai.
Diversification Opportunities for Hangzhou Pinming and Shanghai Rongtai
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hangzhou and Shanghai is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Pinming Software and Shanghai Rongtai Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rongtai Health 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 Shanghai Rongtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rongtai Health has no effect on the direction of Hangzhou Pinming i.e., Hangzhou Pinming and Shanghai Rongtai go up and down completely randomly.
Pair Corralation between Hangzhou Pinming and Shanghai Rongtai
Assuming the 90 days trading horizon Hangzhou Pinming Software is expected to generate 1.45 times more return on investment than Shanghai Rongtai. However, Hangzhou Pinming is 1.45 times more volatile than Shanghai Rongtai Health. It trades about 0.02 of its potential returns per unit of risk. Shanghai Rongtai Health is currently generating about -0.02 per unit of risk. If you would invest 2,292 in Hangzhou Pinming Software on October 30, 2024 and sell it today you would earn a total of 274.00 from holding Hangzhou Pinming Software or generate 11.95% 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. Shanghai Rongtai Health
Performance |
| Timeline |
| Hangzhou Pinming Software |
| Shanghai Rongtai Health |
Hangzhou Pinming and Shanghai Rongtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Pinming and Shanghai Rongtai
The main advantage of trading using opposite Hangzhou Pinming and Shanghai Rongtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Pinming position performs unexpectedly, Shanghai Rongtai 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 Shanghai Rongtai will offset losses from the drop in Shanghai Rongtai's long position.| Hangzhou Pinming vs. Yindu Kitchen Equipment | Hangzhou Pinming vs. Zhejiang Publishing Media | Hangzhou Pinming vs. Changjiang Publishing Media | Hangzhou Pinming vs. Shandong Publishing Media |
| Shanghai Rongtai vs. China Everbright Bank | Shanghai Rongtai vs. Guosheng Financial Holding | Shanghai Rongtai vs. Shandong Rike Chemical | Shanghai Rongtai vs. Hua Xia Bank |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |