Correlation Between Aerospace and Guangxi Wuzhou
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By analyzing existing cross correlation between Aerospace Hi Tech Holding and Guangxi Wuzhou Communications, you can compare the effects of market volatilities on Aerospace and Guangxi Wuzhou 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 Aerospace with a short position of Guangxi Wuzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aerospace and Guangxi Wuzhou.
Diversification Opportunities for Aerospace and Guangxi Wuzhou
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aerospace and Guangxi is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Aerospace Hi Tech Holding and Guangxi Wuzhou Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangxi Wuzhou Commu and Aerospace 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 Aerospace Hi Tech Holding are associated (or correlated) with Guangxi Wuzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangxi Wuzhou Commu has no effect on the direction of Aerospace i.e., Aerospace and Guangxi Wuzhou go up and down completely randomly.
Pair Corralation between Aerospace and Guangxi Wuzhou
Assuming the 90 days trading horizon Aerospace Hi Tech Holding is expected to generate 1.31 times more return on investment than Guangxi Wuzhou. However, Aerospace is 1.31 times more volatile than Guangxi Wuzhou Communications. It trades about 0.03 of its potential returns per unit of risk. Guangxi Wuzhou Communications is currently generating about 0.02 per unit of risk. If you would invest 1,009 in Aerospace Hi Tech Holding on September 2, 2024 and sell it today you would earn a total of 184.00 from holding Aerospace Hi Tech Holding or generate 18.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aerospace Hi Tech Holding vs. Guangxi Wuzhou Communications
Performance |
| Timeline |
| Aerospace Hi Tech |
| Guangxi Wuzhou Commu |
Aerospace and Guangxi Wuzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aerospace and Guangxi Wuzhou
The main advantage of trading using opposite Aerospace and Guangxi Wuzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aerospace position performs unexpectedly, Guangxi Wuzhou 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 Guangxi Wuzhou will offset losses from the drop in Guangxi Wuzhou's long position.| Aerospace vs. BYD Co Ltd | Aerospace vs. China Mobile Limited | Aerospace vs. Agricultural Bank of | Aerospace vs. Industrial and Commercial |
| Guangxi Wuzhou vs. Shanghai Yanpu Metal | Guangxi Wuzhou vs. Guangdong Liantai Environmental | Guangxi Wuzhou vs. Fujian Nanwang Environment | Guangxi Wuzhou vs. Anhui Transport Consulting |
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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