Correlation Between Hangzhou Gisway and Xiandai Investment
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By analyzing existing cross correlation between Hangzhou Gisway Information and Xiandai Investment Co, you can compare the effects of market volatilities on Hangzhou Gisway and Xiandai Investment 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 Gisway with a short position of Xiandai Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Gisway and Xiandai Investment.
Diversification Opportunities for Hangzhou Gisway and Xiandai Investment
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hangzhou and Xiandai is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Gisway Information and Xiandai Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiandai Investment and Hangzhou Gisway 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 Gisway Information are associated (or correlated) with Xiandai Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiandai Investment has no effect on the direction of Hangzhou Gisway i.e., Hangzhou Gisway and Xiandai Investment go up and down completely randomly.
Pair Corralation between Hangzhou Gisway and Xiandai Investment
Assuming the 90 days trading horizon Hangzhou Gisway is expected to generate 1.16 times less return on investment than Xiandai Investment. In addition to that, Hangzhou Gisway is 1.38 times more volatile than Xiandai Investment Co. It trades about 0.12 of its total potential returns per unit of risk. Xiandai Investment Co is currently generating about 0.2 per unit of volatility. If you would invest 350.00 in Xiandai Investment Co on September 5, 2024 and sell it today you would earn a total of 111.00 from holding Xiandai Investment Co or generate 31.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Hangzhou Gisway Information vs. Xiandai Investment Co
Performance |
Timeline |
Hangzhou Gisway Info |
Xiandai Investment |
Hangzhou Gisway and Xiandai Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hangzhou Gisway and Xiandai Investment
The main advantage of trading using opposite Hangzhou Gisway and Xiandai Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Gisway position performs unexpectedly, Xiandai Investment 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 Xiandai Investment will offset losses from the drop in Xiandai Investment's long position.Hangzhou Gisway vs. Hang Xiao Steel | Hangzhou Gisway vs. Anhui Deli Household | Hangzhou Gisway vs. City Development Environment | Hangzhou Gisway vs. Aofu Environmental Technology |
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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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