Correlation Between Hang Xiao and Hangzhou Gisway
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By analyzing existing cross correlation between Hang Xiao Steel and Hangzhou Gisway Information, you can compare the effects of market volatilities on Hang Xiao 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 Hang Xiao with a short position of Hangzhou Gisway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hang Xiao and Hangzhou Gisway.
Diversification Opportunities for Hang Xiao and Hangzhou Gisway
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hang and Hangzhou is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Hang Xiao Steel 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 Hang Xiao 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 Hang Xiao Steel 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 Hang Xiao i.e., Hang Xiao and Hangzhou Gisway go up and down completely randomly.
Pair Corralation between Hang Xiao and Hangzhou Gisway
Assuming the 90 days trading horizon Hang Xiao Steel is expected to generate 0.87 times more return on investment than Hangzhou Gisway. However, Hang Xiao Steel is 1.16 times less risky than Hangzhou Gisway. It trades about 0.21 of its potential returns per unit of risk. Hangzhou Gisway Information is currently generating about 0.16 per unit of risk. If you would invest 216.00 in Hang Xiao Steel on September 13, 2024 and sell it today you would earn a total of 86.00 from holding Hang Xiao Steel or generate 39.81% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Hang Xiao Steel vs. Hangzhou Gisway Information
Performance |
Timeline |
Hang Xiao Steel |
Hangzhou Gisway Info |
Hang Xiao and Hangzhou Gisway Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hang Xiao and Hangzhou Gisway
The main advantage of trading using opposite Hang Xiao and Hangzhou Gisway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hang Xiao 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.Hang Xiao vs. Nanjing Putian Telecommunications | ||
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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