Correlation Between Hangzhou Gisway and Ningbo Fujia
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By analyzing existing cross correlation between Hangzhou Gisway Information and Ningbo Fujia Industrial, you can compare the effects of market volatilities on Hangzhou Gisway and Ningbo Fujia 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 Ningbo Fujia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Gisway and Ningbo Fujia.
Diversification Opportunities for Hangzhou Gisway and Ningbo Fujia
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hangzhou and Ningbo is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Gisway Information and Ningbo Fujia Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Fujia Industrial 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 Ningbo Fujia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Fujia Industrial has no effect on the direction of Hangzhou Gisway i.e., Hangzhou Gisway and Ningbo Fujia go up and down completely randomly.
Pair Corralation between Hangzhou Gisway and Ningbo Fujia
Assuming the 90 days trading horizon Hangzhou Gisway Information is expected to generate 1.64 times more return on investment than Ningbo Fujia. However, Hangzhou Gisway is 1.64 times more volatile than Ningbo Fujia Industrial. It trades about 0.13 of its potential returns per unit of risk. Ningbo Fujia Industrial is currently generating about 0.2 per unit of risk. If you would invest 3,160 in Hangzhou Gisway Information on September 28, 2024 and sell it today you would earn a total of 454.00 from holding Hangzhou Gisway Information or generate 14.37% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.65% |
Values | Daily Returns |
Hangzhou Gisway Information vs. Ningbo Fujia Industrial
Performance |
Timeline |
Hangzhou Gisway Info |
Ningbo Fujia Industrial |
Hangzhou Gisway and Ningbo Fujia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hangzhou Gisway and Ningbo Fujia
The main advantage of trading using opposite Hangzhou Gisway and Ningbo Fujia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Gisway position performs unexpectedly, Ningbo Fujia 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 Ningbo Fujia will offset losses from the drop in Ningbo Fujia's long position.Hangzhou Gisway vs. Chengdu Xingrong Investment | Hangzhou Gisway vs. Spring Airlines Co | Hangzhou Gisway vs. Beijing Mainstreets Investment | Hangzhou Gisway vs. China Express Airlines |
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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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