Correlation Between Hangzhou Coco and Sinomach General
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By analyzing existing cross correlation between Hangzhou Coco Healthcare and Sinomach General Machinery, you can compare the effects of market volatilities on Hangzhou Coco and Sinomach General 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 Coco with a short position of Sinomach General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Coco and Sinomach General.
Diversification Opportunities for Hangzhou Coco and Sinomach General
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hangzhou and Sinomach is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Coco Healthcare and Sinomach General Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach General Mac and Hangzhou Coco 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 Coco Healthcare are associated (or correlated) with Sinomach General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach General Mac has no effect on the direction of Hangzhou Coco i.e., Hangzhou Coco and Sinomach General go up and down completely randomly.
Pair Corralation between Hangzhou Coco and Sinomach General
Assuming the 90 days trading horizon Hangzhou Coco Healthcare is expected to generate 4.11 times more return on investment than Sinomach General. However, Hangzhou Coco is 4.11 times more volatile than Sinomach General Machinery. It trades about 0.18 of its potential returns per unit of risk. Sinomach General Machinery is currently generating about -0.02 per unit of risk. If you would invest 996.00 in Hangzhou Coco Healthcare on September 24, 2024 and sell it today you would earn a total of 263.00 from holding Hangzhou Coco Healthcare or generate 26.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.45% |
Values | Daily Returns |
Hangzhou Coco Healthcare vs. Sinomach General Machinery
Performance |
Timeline |
Hangzhou Coco Healthcare |
Sinomach General Mac |
Hangzhou Coco and Sinomach General Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hangzhou Coco and Sinomach General
The main advantage of trading using opposite Hangzhou Coco and Sinomach General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Coco position performs unexpectedly, Sinomach General 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 Sinomach General will offset losses from the drop in Sinomach General's long position.Hangzhou Coco vs. Bank of China | Hangzhou Coco vs. Kweichow Moutai Co | Hangzhou Coco vs. PetroChina Co Ltd | Hangzhou Coco vs. Bank of Communications |
Sinomach General vs. Zhongshan Public Utilities | Sinomach General vs. Everjoy Health Group | Sinomach General vs. Shanghai Rongtai Health | Sinomach General vs. Hangzhou Coco Healthcare |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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