Correlation Between Guangxi Guiguan and Huaxia Eye
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By analyzing existing cross correlation between Guangxi Guiguan Electric and Huaxia Eye Hospital, you can compare the effects of market volatilities on Guangxi Guiguan and Huaxia Eye 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 Guangxi Guiguan with a short position of Huaxia Eye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Guiguan and Huaxia Eye.
Diversification Opportunities for Guangxi Guiguan and Huaxia Eye
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guangxi and Huaxia is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Guiguan Electric and Huaxia Eye Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaxia Eye Hospital and Guangxi Guiguan 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 Guangxi Guiguan Electric are associated (or correlated) with Huaxia Eye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaxia Eye Hospital has no effect on the direction of Guangxi Guiguan i.e., Guangxi Guiguan and Huaxia Eye go up and down completely randomly.
Pair Corralation between Guangxi Guiguan and Huaxia Eye
Assuming the 90 days trading horizon Guangxi Guiguan Electric is expected to generate 0.77 times more return on investment than Huaxia Eye. However, Guangxi Guiguan Electric is 1.29 times less risky than Huaxia Eye. It trades about 0.37 of its potential returns per unit of risk. Huaxia Eye Hospital is currently generating about -0.04 per unit of risk. If you would invest 618.00 in Guangxi Guiguan Electric on September 25, 2024 and sell it today you would earn a total of 85.00 from holding Guangxi Guiguan Electric or generate 13.75% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Guangxi Guiguan Electric vs. Huaxia Eye Hospital
Performance |
Timeline |
Guangxi Guiguan Electric |
Huaxia Eye Hospital |
Guangxi Guiguan and Huaxia Eye Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangxi Guiguan and Huaxia Eye
The main advantage of trading using opposite Guangxi Guiguan and Huaxia Eye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Guiguan position performs unexpectedly, Huaxia Eye 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 Huaxia Eye will offset losses from the drop in Huaxia Eye's long position.Guangxi Guiguan vs. Industrial and Commercial | Guangxi Guiguan vs. Agricultural Bank of | Guangxi Guiguan vs. China Construction Bank | Guangxi Guiguan vs. Bank of China |
Huaxia Eye vs. China Longyuan Power | Huaxia Eye vs. PetroChina Co Ltd | Huaxia Eye vs. Bank of China | Huaxia Eye vs. Guangxi Guiguan Electric |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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