Correlation Between Zhejiang Orient and Hangzhou Weiguang
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By analyzing existing cross correlation between Zhejiang Orient Gene and Hangzhou Weiguang Electronic, you can compare the effects of market volatilities on Zhejiang Orient and Hangzhou Weiguang 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 Zhejiang Orient with a short position of Hangzhou Weiguang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Orient and Hangzhou Weiguang.
Diversification Opportunities for Zhejiang Orient and Hangzhou Weiguang
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zhejiang and Hangzhou is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Orient Gene and Hangzhou Weiguang Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Weiguang and Zhejiang Orient 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 Zhejiang Orient Gene are associated (or correlated) with Hangzhou Weiguang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Weiguang has no effect on the direction of Zhejiang Orient i.e., Zhejiang Orient and Hangzhou Weiguang go up and down completely randomly.
Pair Corralation between Zhejiang Orient and Hangzhou Weiguang
Assuming the 90 days trading horizon Zhejiang Orient Gene is expected to under-perform the Hangzhou Weiguang. In addition to that, Zhejiang Orient is 1.02 times more volatile than Hangzhou Weiguang Electronic. It trades about -0.05 of its total potential returns per unit of risk. Hangzhou Weiguang Electronic is currently generating about 0.01 per unit of volatility. If you would invest 2,782 in Hangzhou Weiguang Electronic on November 2, 2024 and sell it today you would lose (108.00) from holding Hangzhou Weiguang Electronic or give up 3.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Orient Gene vs. Hangzhou Weiguang Electronic
Performance |
| Timeline |
| Zhejiang Orient Gene |
| Hangzhou Weiguang |
Zhejiang Orient and Hangzhou Weiguang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Orient and Hangzhou Weiguang
The main advantage of trading using opposite Zhejiang Orient and Hangzhou Weiguang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Orient position performs unexpectedly, Hangzhou Weiguang 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 Weiguang will offset losses from the drop in Hangzhou Weiguang's long position.| Zhejiang Orient vs. Allwin Telecommunication Co | Zhejiang Orient vs. Kailong High Technology | Zhejiang Orient vs. Cabio Biotech Wuhan | Zhejiang Orient vs. Dingli Communications Corp |
| Hangzhou Weiguang vs. Eyebright Medical Technology | Hangzhou Weiguang vs. Bonree Data Technology | Hangzhou Weiguang vs. Jinxiandai Information Industry | Hangzhou Weiguang vs. YLZ Information Tech |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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