Correlation Between Hangzhou Gisway and Zoomlion Heavy
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By analyzing existing cross correlation between Hangzhou Gisway Information and Zoomlion Heavy Industry, you can compare the effects of market volatilities on Hangzhou Gisway and Zoomlion Heavy 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 Zoomlion Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Gisway and Zoomlion Heavy.
Diversification Opportunities for Hangzhou Gisway and Zoomlion Heavy
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hangzhou and Zoomlion is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Gisway Information and Zoomlion Heavy Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoomlion Heavy Industry 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 Zoomlion Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoomlion Heavy Industry has no effect on the direction of Hangzhou Gisway i.e., Hangzhou Gisway and Zoomlion Heavy go up and down completely randomly.
Pair Corralation between Hangzhou Gisway and Zoomlion Heavy
Assuming the 90 days trading horizon Hangzhou Gisway Information is expected to generate 1.71 times more return on investment than Zoomlion Heavy. However, Hangzhou Gisway is 1.71 times more volatile than Zoomlion Heavy Industry. It trades about 0.05 of its potential returns per unit of risk. Zoomlion Heavy Industry is currently generating about -0.04 per unit of risk. If you would invest 3,200 in Hangzhou Gisway Information on September 24, 2024 and sell it today you would earn a total of 742.00 from holding Hangzhou Gisway Information or generate 23.19% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Hangzhou Gisway Information vs. Zoomlion Heavy Industry
Performance |
Timeline |
Hangzhou Gisway Info |
Zoomlion Heavy Industry |
Hangzhou Gisway and Zoomlion Heavy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hangzhou Gisway and Zoomlion Heavy
The main advantage of trading using opposite Hangzhou Gisway and Zoomlion Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Gisway position performs unexpectedly, Zoomlion Heavy 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 Zoomlion Heavy will offset losses from the drop in Zoomlion Heavy's long position.Hangzhou Gisway vs. Kweichow Moutai Co | Hangzhou Gisway vs. Shenzhen Mindray Bio Medical | Hangzhou Gisway vs. Jiangsu Pacific Quartz | Hangzhou Gisway vs. G bits Network Technology |
Zoomlion Heavy vs. Industrial and Commercial | Zoomlion Heavy vs. Agricultural Bank of | Zoomlion Heavy vs. China Construction Bank | Zoomlion Heavy vs. Bank of China |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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