Correlation Between HengFeng Information and Guangzhou Jointas
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By analyzing existing cross correlation between HengFeng Information Technology and Guangzhou Jointas Chemical, you can compare the effects of market volatilities on HengFeng Information and Guangzhou Jointas 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 HengFeng Information with a short position of Guangzhou Jointas. Check out your portfolio center. Please also check ongoing floating volatility patterns of HengFeng Information and Guangzhou Jointas.
Diversification Opportunities for HengFeng Information and Guangzhou Jointas
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between HengFeng and Guangzhou is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding HengFeng Information Technolog and Guangzhou Jointas Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jointas and HengFeng Information 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 HengFeng Information Technology are associated (or correlated) with Guangzhou Jointas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jointas has no effect on the direction of HengFeng Information i.e., HengFeng Information and Guangzhou Jointas go up and down completely randomly.
Pair Corralation between HengFeng Information and Guangzhou Jointas
Assuming the 90 days trading horizon HengFeng Information is expected to generate 1.18 times less return on investment than Guangzhou Jointas. In addition to that, HengFeng Information is 1.39 times more volatile than Guangzhou Jointas Chemical. It trades about 0.07 of its total potential returns per unit of risk. Guangzhou Jointas Chemical is currently generating about 0.12 per unit of volatility. If you would invest 411.00 in Guangzhou Jointas Chemical on September 25, 2024 and sell it today you would earn a total of 96.00 from holding Guangzhou Jointas Chemical or generate 23.36% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
HengFeng Information Technolog vs. Guangzhou Jointas Chemical
Performance |
Timeline |
HengFeng Information |
Guangzhou Jointas |
HengFeng Information and Guangzhou Jointas Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HengFeng Information and Guangzhou Jointas
The main advantage of trading using opposite HengFeng Information and Guangzhou Jointas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HengFeng Information position performs unexpectedly, Guangzhou Jointas 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 Guangzhou Jointas will offset losses from the drop in Guangzhou Jointas' long position.HengFeng Information vs. Kweichow Moutai Co | HengFeng Information vs. Shenzhen Mindray Bio Medical | HengFeng Information vs. Jiangsu Pacific Quartz | HengFeng Information vs. G bits Network Technology |
Guangzhou Jointas vs. DO Home Collection | Guangzhou Jointas vs. Westone Information Industry | Guangzhou Jointas vs. Qumei Furniture Group | Guangzhou Jointas vs. HengFeng Information Technology |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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