Correlation Between Guangzhou Haige and Heilongjiang Transport
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By analyzing existing cross correlation between Guangzhou Haige Communications and Heilongjiang Transport Development, you can compare the effects of market volatilities on Guangzhou Haige and Heilongjiang Transport 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 Guangzhou Haige with a short position of Heilongjiang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Heilongjiang Transport.
Diversification Opportunities for Guangzhou Haige and Heilongjiang Transport
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Heilongjiang is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Heilongjiang Transport Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Transport and Guangzhou Haige 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 Guangzhou Haige Communications are associated (or correlated) with Heilongjiang Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Transport has no effect on the direction of Guangzhou Haige i.e., Guangzhou Haige and Heilongjiang Transport go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Heilongjiang Transport
Assuming the 90 days trading horizon Guangzhou Haige Communications is expected to generate 1.22 times more return on investment than Heilongjiang Transport. However, Guangzhou Haige is 1.22 times more volatile than Heilongjiang Transport Development. It trades about 0.14 of its potential returns per unit of risk. Heilongjiang Transport Development is currently generating about 0.11 per unit of risk. If you would invest 888.00 in Guangzhou Haige Communications on September 25, 2024 and sell it today you would earn a total of 261.00 from holding Guangzhou Haige Communications or generate 29.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Guangzhou Haige Communications vs. Heilongjiang Transport Develop
Performance |
Timeline |
Guangzhou Haige Comm |
Heilongjiang Transport |
Guangzhou Haige and Heilongjiang Transport Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangzhou Haige and Heilongjiang Transport
The main advantage of trading using opposite Guangzhou Haige and Heilongjiang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige position performs unexpectedly, Heilongjiang Transport 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 Heilongjiang Transport will offset losses from the drop in Heilongjiang Transport's long position.Guangzhou Haige vs. Industrial and Commercial | Guangzhou Haige vs. Agricultural Bank of | Guangzhou Haige vs. China Construction Bank | Guangzhou Haige 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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