Correlation Between Hangzhou Pinming and Guotai Epoint
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By analyzing existing cross correlation between Hangzhou Pinming Software and Guotai Epoint Software, you can compare the effects of market volatilities on Hangzhou Pinming and Guotai Epoint 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 Guotai Epoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Pinming and Guotai Epoint.
Diversification Opportunities for Hangzhou Pinming and Guotai Epoint
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hangzhou and Guotai is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Pinming Software and Guotai Epoint Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guotai Epoint Software 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 Guotai Epoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guotai Epoint Software has no effect on the direction of Hangzhou Pinming i.e., Hangzhou Pinming and Guotai Epoint go up and down completely randomly.
Pair Corralation between Hangzhou Pinming and Guotai Epoint
Assuming the 90 days trading horizon Hangzhou Pinming Software is expected to under-perform the Guotai Epoint. In addition to that, Hangzhou Pinming is 1.25 times more volatile than Guotai Epoint Software. It trades about -0.25 of its total potential returns per unit of risk. Guotai Epoint Software is currently generating about -0.16 per unit of volatility. If you would invest 3,103 in Guotai Epoint Software on October 20, 2024 and sell it today you would lose (247.00) from holding Guotai Epoint Software or give up 7.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Pinming Software vs. Guotai Epoint Software
Performance |
| Timeline |
| Hangzhou Pinming Software |
| Guotai Epoint Software |
Hangzhou Pinming and Guotai Epoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Pinming and Guotai Epoint
The main advantage of trading using opposite Hangzhou Pinming and Guotai Epoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Pinming position performs unexpectedly, Guotai Epoint 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 Guotai Epoint will offset losses from the drop in Guotai Epoint's long position.| Hangzhou Pinming vs. XiaMen HongXin Electron tech | Hangzhou Pinming vs. Nanjing OLO Home | Hangzhou Pinming vs. Qumei Furniture Group | Hangzhou Pinming vs. Nanxing Furniture Machinery |
| Guotai Epoint vs. Rising Nonferrous Metals | Guotai Epoint vs. Longmaster Information Tech | Guotai Epoint vs. Zhejiang Yongjin Metal | Guotai Epoint vs. Heilongjiang Transport Development |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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