Correlation Between HanS Laser and Guangzhou Dongfang
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By analyzing existing cross correlation between HanS Laser Tech and Guangzhou Dongfang Hotel, you can compare the effects of market volatilities on HanS Laser and Guangzhou Dongfang 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 HanS Laser with a short position of Guangzhou Dongfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of HanS Laser and Guangzhou Dongfang.
Diversification Opportunities for HanS Laser and Guangzhou Dongfang
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between HanS and Guangzhou is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding HanS Laser Tech and Guangzhou Dongfang Hotel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Dongfang Hotel and HanS Laser 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 HanS Laser Tech are associated (or correlated) with Guangzhou Dongfang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Dongfang Hotel has no effect on the direction of HanS Laser i.e., HanS Laser and Guangzhou Dongfang go up and down completely randomly.
Pair Corralation between HanS Laser and Guangzhou Dongfang
Assuming the 90 days trading horizon HanS Laser Tech is expected to generate 2.06 times more return on investment than Guangzhou Dongfang. However, HanS Laser is 2.06 times more volatile than Guangzhou Dongfang Hotel. It trades about 0.03 of its potential returns per unit of risk. Guangzhou Dongfang Hotel is currently generating about -0.03 per unit of risk. If you would invest 2,478 in HanS Laser Tech on August 28, 2024 and sell it today you would earn a total of 32.00 from holding HanS Laser Tech or generate 1.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HanS Laser Tech vs. Guangzhou Dongfang Hotel
Performance |
| Timeline |
| HanS Laser Tech |
| Guangzhou Dongfang Hotel |
HanS Laser and Guangzhou Dongfang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HanS Laser and Guangzhou Dongfang
The main advantage of trading using opposite HanS Laser and Guangzhou Dongfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HanS Laser position performs unexpectedly, Guangzhou Dongfang 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 Dongfang will offset losses from the drop in Guangzhou Dongfang's long position.| HanS Laser vs. Biwin Storage Technology | HanS Laser vs. PetroChina Co Ltd | HanS Laser vs. Industrial and Commercial | HanS Laser vs. China Construction Bank |
| Guangzhou Dongfang vs. Biwin Storage Technology | Guangzhou Dongfang vs. PetroChina Co Ltd | Guangzhou Dongfang vs. Industrial and Commercial | Guangzhou Dongfang vs. China Construction Bank |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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