Correlation Between Hangzhou EZVIZ and HUAQIN TECHNOLOGY
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By analyzing existing cross correlation between Hangzhou EZVIZ Network and HUAQIN TECHNOLOGY LTD, you can compare the effects of market volatilities on Hangzhou EZVIZ and HUAQIN TECHNOLOGY 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 EZVIZ with a short position of HUAQIN TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou EZVIZ and HUAQIN TECHNOLOGY.
Diversification Opportunities for Hangzhou EZVIZ and HUAQIN TECHNOLOGY
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hangzhou and HUAQIN is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou EZVIZ Network and HUAQIN TECHNOLOGY LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUAQIN TECHNOLOGY LTD and Hangzhou EZVIZ 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 EZVIZ Network are associated (or correlated) with HUAQIN TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUAQIN TECHNOLOGY LTD has no effect on the direction of Hangzhou EZVIZ i.e., Hangzhou EZVIZ and HUAQIN TECHNOLOGY go up and down completely randomly.
Pair Corralation between Hangzhou EZVIZ and HUAQIN TECHNOLOGY
Assuming the 90 days trading horizon Hangzhou EZVIZ Network is expected to under-perform the HUAQIN TECHNOLOGY. But the stock apears to be less risky and, when comparing its historical volatility, Hangzhou EZVIZ Network is 1.14 times less risky than HUAQIN TECHNOLOGY. The stock trades about -0.01 of its potential returns per unit of risk. The HUAQIN TECHNOLOGY LTD is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 6,069 in HUAQIN TECHNOLOGY LTD on September 26, 2024 and sell it today you would earn a total of 338.00 from holding HUAQIN TECHNOLOGY LTD or generate 5.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou EZVIZ Network vs. HUAQIN TECHNOLOGY LTD
Performance |
| Timeline |
| Hangzhou EZVIZ Network |
| HUAQIN TECHNOLOGY LTD |
Hangzhou EZVIZ and HUAQIN TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou EZVIZ and HUAQIN TECHNOLOGY
The main advantage of trading using opposite Hangzhou EZVIZ and HUAQIN TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou EZVIZ position performs unexpectedly, HUAQIN TECHNOLOGY 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 HUAQIN TECHNOLOGY will offset losses from the drop in HUAQIN TECHNOLOGY's long position.| Hangzhou EZVIZ vs. Nanxing Furniture Machinery | Hangzhou EZVIZ vs. Guangzhou Automobile Group | Hangzhou EZVIZ vs. Senci Electric Machinery | Hangzhou EZVIZ vs. Lutian Machinery Co |
| HUAQIN TECHNOLOGY vs. Anker Innovations Technology | HUAQIN TECHNOLOGY vs. Sharetronic Data Technology | HUAQIN TECHNOLOGY vs. Hangzhou EZVIZ Network | HUAQIN TECHNOLOGY vs. Sichuan Furong Technology |
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 CEOs Directory module to screen CEOs from public companies around the world.
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