Correlation Between Hubei Huaqiang and Hangzhou Gisway
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By analyzing existing cross correlation between Hubei Huaqiang High Tech and Hangzhou Gisway Information, you can compare the effects of market volatilities on Hubei Huaqiang and Hangzhou Gisway 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 Hubei Huaqiang with a short position of Hangzhou Gisway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Huaqiang and Hangzhou Gisway.
Diversification Opportunities for Hubei Huaqiang and Hangzhou Gisway
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hubei and Hangzhou is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Huaqiang High Tech and Hangzhou Gisway Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Gisway Info and Hubei Huaqiang 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 Hubei Huaqiang High Tech are associated (or correlated) with Hangzhou Gisway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Gisway Info has no effect on the direction of Hubei Huaqiang i.e., Hubei Huaqiang and Hangzhou Gisway go up and down completely randomly.
Pair Corralation between Hubei Huaqiang and Hangzhou Gisway
Assuming the 90 days trading horizon Hubei Huaqiang is expected to generate 1.57 times less return on investment than Hangzhou Gisway. But when comparing it to its historical volatility, Hubei Huaqiang High Tech is 1.15 times less risky than Hangzhou Gisway. It trades about 0.04 of its potential returns per unit of risk. Hangzhou Gisway Information is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,143 in Hangzhou Gisway Information on September 1, 2024 and sell it today you would earn a total of 91.00 from holding Hangzhou Gisway Information or generate 2.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Huaqiang High Tech vs. Hangzhou Gisway Information
Performance |
| Timeline |
| Hubei Huaqiang High |
| Hangzhou Gisway Info |
Hubei Huaqiang and Hangzhou Gisway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Huaqiang and Hangzhou Gisway
The main advantage of trading using opposite Hubei Huaqiang and Hangzhou Gisway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Huaqiang position performs unexpectedly, Hangzhou Gisway 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 Gisway will offset losses from the drop in Hangzhou Gisway's long position.| Hubei Huaqiang vs. Nanjing Putian Telecommunications | Hubei Huaqiang vs. Shenzhen Hifuture Electric | Hubei Huaqiang vs. Tianjin Realty Development | Hubei Huaqiang vs. Shenyang Huitian Thermal |
| Hangzhou Gisway vs. China Petroleum Chemical | Hangzhou Gisway vs. PetroChina Co Ltd | Hangzhou Gisway vs. China State Construction | Hangzhou Gisway vs. China Railway Group |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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