Correlation Between Gansu Huangtai and Hengli Industrial
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By analyzing existing cross correlation between Gansu Huangtai Wine marketing and Hengli Industrial Development, you can compare the effects of market volatilities on Gansu Huangtai and Hengli Industrial 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 Gansu Huangtai with a short position of Hengli Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Huangtai and Hengli Industrial.
Diversification Opportunities for Gansu Huangtai and Hengli Industrial
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gansu and Hengli is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Huangtai Wine marketing and Hengli Industrial Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengli Industrial and Gansu Huangtai 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 Gansu Huangtai Wine marketing are associated (or correlated) with Hengli Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengli Industrial has no effect on the direction of Gansu Huangtai i.e., Gansu Huangtai and Hengli Industrial go up and down completely randomly.
Pair Corralation between Gansu Huangtai and Hengli Industrial
Assuming the 90 days trading horizon Gansu Huangtai Wine marketing is expected to generate 0.95 times more return on investment than Hengli Industrial. However, Gansu Huangtai Wine marketing is 1.05 times less risky than Hengli Industrial. It trades about 0.02 of its potential returns per unit of risk. Hengli Industrial Development is currently generating about -0.05 per unit of risk. If you would invest 1,601 in Gansu Huangtai Wine marketing on September 26, 2024 and sell it today you would earn a total of 73.00 from holding Gansu Huangtai Wine marketing or generate 4.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Gansu Huangtai Wine marketing vs. Hengli Industrial Development
Performance |
Timeline |
Gansu Huangtai Wine |
Hengli Industrial |
Gansu Huangtai and Hengli Industrial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gansu Huangtai and Hengli Industrial
The main advantage of trading using opposite Gansu Huangtai and Hengli Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Huangtai position performs unexpectedly, Hengli Industrial 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 Hengli Industrial will offset losses from the drop in Hengli Industrial's long position.Gansu Huangtai vs. PetroChina Co Ltd | Gansu Huangtai vs. China Mobile Limited | Gansu Huangtai vs. CNOOC Limited | Gansu Huangtai vs. Ping An Insurance |
Hengli Industrial vs. Ningbo Homelink Eco iTech | Hengli Industrial vs. Xilinmen Furniture Co | Hengli Industrial vs. Gansu Huangtai Wine marketing | Hengli Industrial vs. Hangzhou Pinming Software |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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