Correlation Between Guangzhou Seagull and Anhui Huaren
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By analyzing existing cross correlation between Guangzhou Seagull Kitchen and Anhui Huaren Health, you can compare the effects of market volatilities on Guangzhou Seagull and Anhui Huaren 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 Guangzhou Seagull with a short position of Anhui Huaren. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Seagull and Anhui Huaren.
Diversification Opportunities for Guangzhou Seagull and Anhui Huaren
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Anhui is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Seagull Kitchen and Anhui Huaren Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huaren Health and Guangzhou Seagull 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 Guangzhou Seagull Kitchen are associated (or correlated) with Anhui Huaren. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huaren Health has no effect on the direction of Guangzhou Seagull i.e., Guangzhou Seagull and Anhui Huaren go up and down completely randomly.
Pair Corralation between Guangzhou Seagull and Anhui Huaren
Assuming the 90 days trading horizon Guangzhou Seagull Kitchen is expected to generate 1.57 times more return on investment than Anhui Huaren. However, Guangzhou Seagull is 1.57 times more volatile than Anhui Huaren Health. It trades about -0.06 of its potential returns per unit of risk. Anhui Huaren Health is currently generating about -0.15 per unit of risk. If you would invest 296.00 in Guangzhou Seagull Kitchen on October 25, 2024 and sell it today you would lose (16.00) from holding Guangzhou Seagull Kitchen or give up 5.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Guangzhou Seagull Kitchen vs. Anhui Huaren Health
Performance |
| Timeline |
| Guangzhou Seagull Kitchen |
| Anhui Huaren Health |
Guangzhou Seagull and Anhui Huaren Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Seagull and Anhui Huaren
The main advantage of trading using opposite Guangzhou Seagull and Anhui Huaren positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Seagull position performs unexpectedly, Anhui Huaren 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 Anhui Huaren will offset losses from the drop in Anhui Huaren's long position.| Guangzhou Seagull vs. Ziel Home Furnishing | Guangzhou Seagull vs. Guangdong Jingyi Metal | Guangzhou Seagull vs. Aba Chemicals Corp | Guangzhou Seagull vs. Shanghai Shuixing Home |
| Anhui Huaren vs. Cloud Live Technology | Anhui Huaren vs. Nanjing Putian Telecommunications | Anhui Huaren vs. Shenzhen Coship Electronics | Anhui Huaren vs. Shenzhen Hifuture Electric |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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