Correlation Between Shenyang Huitian and Guangzhou Haige
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By analyzing existing cross correlation between Shenyang Huitian Thermal and Guangzhou Haige Communications, you can compare the effects of market volatilities on Shenyang Huitian and Guangzhou Haige 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 Shenyang Huitian with a short position of Guangzhou Haige. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Guangzhou Haige.
Diversification Opportunities for Shenyang Huitian and Guangzhou Haige
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenyang and Guangzhou is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and Guangzhou Haige Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haige Comm and Shenyang Huitian 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 Shenyang Huitian Thermal are associated (or correlated) with Guangzhou Haige. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haige Comm has no effect on the direction of Shenyang Huitian i.e., Shenyang Huitian and Guangzhou Haige go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Guangzhou Haige
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to generate 0.79 times more return on investment than Guangzhou Haige. However, Shenyang Huitian Thermal is 1.27 times less risky than Guangzhou Haige. It trades about 0.02 of its potential returns per unit of risk. Guangzhou Haige Communications is currently generating about -0.03 per unit of risk. If you would invest 396.00 in Shenyang Huitian Thermal on September 13, 2024 and sell it today you would earn a total of 2.00 from holding Shenyang Huitian Thermal or generate 0.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. Guangzhou Haige Communications
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Guangzhou Haige Comm |
Shenyang Huitian and Guangzhou Haige Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Guangzhou Haige
The main advantage of trading using opposite Shenyang Huitian and Guangzhou Haige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian position performs unexpectedly, Guangzhou Haige 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 Haige will offset losses from the drop in Guangzhou Haige's long position.| Shenyang Huitian vs. Agricultural Bank of | Shenyang Huitian vs. Industrial and Commercial | Shenyang Huitian vs. Bank of China | Shenyang Huitian vs. PetroChina Co Ltd |
| Guangzhou Haige vs. Changchun UP Optotech | Guangzhou Haige vs. Yunnan Copper Co | Guangzhou Haige vs. Kangping Technology Co | Guangzhou Haige vs. Peoples Insurance of |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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