Correlation Between CSG Holding and Hangzhou Huawang
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By analyzing existing cross correlation between CSG Holding Co and Hangzhou Huawang New, you can compare the effects of market volatilities on CSG Holding and Hangzhou Huawang 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 CSG Holding with a short position of Hangzhou Huawang. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSG Holding and Hangzhou Huawang.
Diversification Opportunities for CSG Holding and Hangzhou Huawang
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CSG and Hangzhou is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding CSG Holding Co and Hangzhou Huawang New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Huawang New and CSG Holding 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 CSG Holding Co are associated (or correlated) with Hangzhou Huawang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Huawang New has no effect on the direction of CSG Holding i.e., CSG Holding and Hangzhou Huawang go up and down completely randomly.
Pair Corralation between CSG Holding and Hangzhou Huawang
Assuming the 90 days trading horizon CSG Holding is expected to generate 15.62 times less return on investment than Hangzhou Huawang. But when comparing it to its historical volatility, CSG Holding Co is 2.32 times less risky than Hangzhou Huawang. It trades about 0.03 of its potential returns per unit of risk. Hangzhou Huawang New is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,250 in Hangzhou Huawang New on September 27, 2024 and sell it today you would earn a total of 97.00 from holding Hangzhou Huawang New or generate 7.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
CSG Holding Co vs. Hangzhou Huawang New
Performance |
Timeline |
CSG Holding |
Hangzhou Huawang New |
CSG Holding and Hangzhou Huawang Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CSG Holding and Hangzhou Huawang
The main advantage of trading using opposite CSG Holding and Hangzhou Huawang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSG Holding position performs unexpectedly, Hangzhou Huawang 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 Huawang will offset losses from the drop in Hangzhou Huawang's long position.CSG Holding vs. Zijin Mining Group | CSG Holding vs. Wanhua Chemical Group | CSG Holding vs. Baoshan Iron Steel | CSG Holding vs. Shandong Gold Mining |
Hangzhou Huawang vs. Zijin Mining Group | Hangzhou Huawang vs. Wanhua Chemical Group | Hangzhou Huawang vs. Baoshan Iron Steel | Hangzhou Huawang vs. Shandong Gold Mining |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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