Correlation Between Hunan Investment and Guangzhou Shiyuan
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By analyzing existing cross correlation between Hunan Investment Group and Guangzhou Shiyuan Electronic, you can compare the effects of market volatilities on Hunan Investment and Guangzhou Shiyuan 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 Hunan Investment with a short position of Guangzhou Shiyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Investment and Guangzhou Shiyuan.
Diversification Opportunities for Hunan Investment and Guangzhou Shiyuan
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hunan and Guangzhou is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Investment Group and Guangzhou Shiyuan Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Shiyuan and Hunan Investment 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 Hunan Investment Group are associated (or correlated) with Guangzhou Shiyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Shiyuan has no effect on the direction of Hunan Investment i.e., Hunan Investment and Guangzhou Shiyuan go up and down completely randomly.
Pair Corralation between Hunan Investment and Guangzhou Shiyuan
Assuming the 90 days trading horizon Hunan Investment Group is expected to generate 1.13 times more return on investment than Guangzhou Shiyuan. However, Hunan Investment is 1.13 times more volatile than Guangzhou Shiyuan Electronic. It trades about 0.2 of its potential returns per unit of risk. Guangzhou Shiyuan Electronic is currently generating about 0.04 per unit of risk. If you would invest 524.00 in Hunan Investment Group on September 13, 2024 and sell it today you would earn a total of 81.00 from holding Hunan Investment Group or generate 15.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Investment Group vs. Guangzhou Shiyuan Electronic
Performance |
| Timeline |
| Hunan Investment |
| Guangzhou Shiyuan |
Hunan Investment and Guangzhou Shiyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Investment and Guangzhou Shiyuan
The main advantage of trading using opposite Hunan Investment and Guangzhou Shiyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Investment position performs unexpectedly, Guangzhou Shiyuan 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 Shiyuan will offset losses from the drop in Guangzhou Shiyuan's long position.| Hunan Investment vs. Kweichow Moutai Co | Hunan Investment vs. Jiangsu Pacific Quartz | Hunan Investment vs. Shenzhen Transsion Holdings | Hunan Investment vs. Beijing Roborock Technology |
| Guangzhou Shiyuan vs. Henan Shuanghui Investment | Guangzhou Shiyuan vs. Zhejiang Construction Investment | Guangzhou Shiyuan vs. Hunan Investment Group | Guangzhou Shiyuan vs. China Asset Management |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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