Correlation Between HanS Laser and Guangzhou Hongli
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By analyzing existing cross correlation between HanS Laser Tech and Guangzhou Hongli Opto, you can compare the effects of market volatilities on HanS Laser and Guangzhou Hongli 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 Hongli. Check out your portfolio center. Please also check ongoing floating volatility patterns of HanS Laser and Guangzhou Hongli.
Diversification Opportunities for HanS Laser and Guangzhou Hongli
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HanS and Guangzhou is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding HanS Laser Tech and Guangzhou Hongli Opto in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Hongli Opto 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 Hongli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Hongli Opto has no effect on the direction of HanS Laser i.e., HanS Laser and Guangzhou Hongli go up and down completely randomly.
Pair Corralation between HanS Laser and Guangzhou Hongli
Assuming the 90 days trading horizon HanS Laser Tech is expected to generate 0.74 times more return on investment than Guangzhou Hongli. However, HanS Laser Tech is 1.35 times less risky than Guangzhou Hongli. It trades about 0.04 of its potential returns per unit of risk. Guangzhou Hongli Opto is currently generating about 0.0 per unit of risk. If you would invest 1,990 in HanS Laser Tech on October 16, 2024 and sell it today you would earn a total of 434.00 from holding HanS Laser Tech or generate 21.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HanS Laser Tech vs. Guangzhou Hongli Opto
Performance |
| Timeline |
| HanS Laser Tech |
| Guangzhou Hongli Opto |
HanS Laser and Guangzhou Hongli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HanS Laser and Guangzhou Hongli
The main advantage of trading using opposite HanS Laser and Guangzhou Hongli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HanS Laser position performs unexpectedly, Guangzhou Hongli 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 Hongli will offset losses from the drop in Guangzhou Hongli's long position.| HanS Laser vs. Lotus Health Group | HanS Laser vs. Caihong Display Devices | HanS Laser vs. Bohai Leasing Co | HanS Laser vs. Sportsoul Co Ltd |
| Guangzhou Hongli vs. Montage Technology Co | Guangzhou Hongli vs. HanS Laser Tech | Guangzhou Hongli vs. Sharetronic Data Technology | Guangzhou Hongli vs. CITIC Guoan Information |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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