Correlation Between GreenTech Environmental and Weihai Honglin
Specify exactly 2 symbols:
By analyzing existing cross correlation between GreenTech Environmental Co and Weihai Honglin Electronic, you can compare the effects of market volatilities on GreenTech Environmental and Weihai Honglin 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 GreenTech Environmental with a short position of Weihai Honglin. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenTech Environmental and Weihai Honglin.
Diversification Opportunities for GreenTech Environmental and Weihai Honglin
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GreenTech and Weihai is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding GreenTech Environmental Co and Weihai Honglin Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weihai Honglin Electronic and GreenTech Environmental 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 GreenTech Environmental Co are associated (or correlated) with Weihai Honglin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weihai Honglin Electronic has no effect on the direction of GreenTech Environmental i.e., GreenTech Environmental and Weihai Honglin go up and down completely randomly.
Pair Corralation between GreenTech Environmental and Weihai Honglin
Assuming the 90 days trading horizon GreenTech Environmental Co is expected to under-perform the Weihai Honglin. But the stock apears to be less risky and, when comparing its historical volatility, GreenTech Environmental Co is 1.31 times less risky than Weihai Honglin. The stock trades about -0.16 of its potential returns per unit of risk. The Weihai Honglin Electronic is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,357 in Weihai Honglin Electronic on October 25, 2024 and sell it today you would earn a total of 398.00 from holding Weihai Honglin Electronic or generate 29.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GreenTech Environmental Co vs. Weihai Honglin Electronic
Performance |
| Timeline |
| GreenTech Environmental |
| Weihai Honglin Electronic |
GreenTech Environmental and Weihai Honglin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenTech Environmental and Weihai Honglin
The main advantage of trading using opposite GreenTech Environmental and Weihai Honglin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenTech Environmental position performs unexpectedly, Weihai Honglin 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 Weihai Honglin will offset losses from the drop in Weihai Honglin's long position.| GreenTech Environmental vs. Gansu Jiu Steel | GreenTech Environmental vs. Ming Yang Smart | GreenTech Environmental vs. Aba Chemicals Corp | GreenTech Environmental vs. Loctek Ergonomic Technology |
| Weihai Honglin vs. Kweichow Moutai Co | Weihai Honglin vs. Contemporary Amperex Technology | Weihai Honglin vs. Beijing Roborock Technology | Weihai Honglin vs. BYD Co Ltd |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |