Correlation Between Shanghai Lingyun and Hangzhou Gisway
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By analyzing existing cross correlation between Shanghai Lingyun Industries and Hangzhou Gisway Information, you can compare the effects of market volatilities on Shanghai Lingyun 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 Shanghai Lingyun with a short position of Hangzhou Gisway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Lingyun and Hangzhou Gisway.
Diversification Opportunities for Shanghai Lingyun and Hangzhou Gisway
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Hangzhou is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Lingyun Industries 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 Shanghai Lingyun 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 Shanghai Lingyun Industries 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 Shanghai Lingyun i.e., Shanghai Lingyun and Hangzhou Gisway go up and down completely randomly.
Pair Corralation between Shanghai Lingyun and Hangzhou Gisway
Assuming the 90 days trading horizon Shanghai Lingyun is expected to generate 1.58 times less return on investment than Hangzhou Gisway. In addition to that, Shanghai Lingyun is 1.69 times more volatile than Hangzhou Gisway Information. It trades about 0.05 of its total potential returns per unit of risk. Hangzhou Gisway Information is currently generating about 0.13 per unit of volatility. If you would invest 3,045 in Hangzhou Gisway Information on September 3, 2024 and sell it today you would earn a total of 189.00 from holding Hangzhou Gisway Information or generate 6.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Lingyun Industries vs. Hangzhou Gisway Information
Performance |
| Timeline |
| Shanghai Lingyun Ind |
| Hangzhou Gisway Info |
Shanghai Lingyun and Hangzhou Gisway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Lingyun and Hangzhou Gisway
The main advantage of trading using opposite Shanghai Lingyun and Hangzhou Gisway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Lingyun 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.| Shanghai Lingyun vs. Industrial and Commercial | Shanghai Lingyun vs. Agricultural Bank of | Shanghai Lingyun vs. China Construction Bank | Shanghai Lingyun vs. Bank of China |
| Hangzhou Gisway vs. Fujian Longzhou Transportation | Hangzhou Gisway vs. Hainan Haiqi Transportation | Hangzhou Gisway vs. Broadex Technologies Co | Hangzhou Gisway 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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