Correlation Between HanS Laser and Guangdong Shenglu
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By analyzing existing cross correlation between HanS Laser Tech and Guangdong Shenglu Telecommunication, you can compare the effects of market volatilities on HanS Laser and Guangdong Shenglu 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 Guangdong Shenglu. Check out your portfolio center. Please also check ongoing floating volatility patterns of HanS Laser and Guangdong Shenglu.
Diversification Opportunities for HanS Laser and Guangdong Shenglu
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between HanS and Guangdong is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding HanS Laser Tech and Guangdong Shenglu Telecommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Shenglu 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 Guangdong Shenglu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Shenglu has no effect on the direction of HanS Laser i.e., HanS Laser and Guangdong Shenglu go up and down completely randomly.
Pair Corralation between HanS Laser and Guangdong Shenglu
Assuming the 90 days trading horizon HanS Laser Tech is expected to generate 1.08 times more return on investment than Guangdong Shenglu. However, HanS Laser is 1.08 times more volatile than Guangdong Shenglu Telecommunication. It trades about 0.11 of its potential returns per unit of risk. Guangdong Shenglu Telecommunication is currently generating about 0.03 per unit of risk. If you would invest 2,457 in HanS Laser Tech on August 26, 2024 and sell it today you would earn a total of 193.00 from holding HanS Laser Tech or generate 7.86% 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. Guangdong Shenglu Telecommunic
Performance |
| Timeline |
| HanS Laser Tech |
| Guangdong Shenglu |
HanS Laser and Guangdong Shenglu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HanS Laser and Guangdong Shenglu
The main advantage of trading using opposite HanS Laser and Guangdong Shenglu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HanS Laser position performs unexpectedly, Guangdong Shenglu 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 Guangdong Shenglu will offset losses from the drop in Guangdong Shenglu'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 |
| Guangdong Shenglu vs. Shenzhen MYS Environmental | Guangdong Shenglu vs. AVIC Fund Management | Guangdong Shenglu vs. Shenzhen Bingchuan Network | Guangdong Shenglu vs. Penghua Shenzhen Energy |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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