Correlation Between Guangzhou Seagull and Harbin Hatou
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By analyzing existing cross correlation between Guangzhou Seagull Kitchen and Harbin Hatou Investment, you can compare the effects of market volatilities on Guangzhou Seagull and Harbin Hatou 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 Harbin Hatou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Seagull and Harbin Hatou.
Diversification Opportunities for Guangzhou Seagull and Harbin Hatou
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Harbin is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Seagull Kitchen and Harbin Hatou Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbin Hatou Investment 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 Harbin Hatou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbin Hatou Investment has no effect on the direction of Guangzhou Seagull i.e., Guangzhou Seagull and Harbin Hatou go up and down completely randomly.
Pair Corralation between Guangzhou Seagull and Harbin Hatou
Assuming the 90 days trading horizon Guangzhou Seagull Kitchen is expected to under-perform the Harbin Hatou. In addition to that, Guangzhou Seagull is 1.48 times more volatile than Harbin Hatou Investment. It trades about -0.27 of its total potential returns per unit of risk. Harbin Hatou Investment is currently generating about -0.29 per unit of volatility. If you would invest 726.00 in Harbin Hatou Investment on October 16, 2024 and sell it today you would lose (119.00) from holding Harbin Hatou Investment or give up 16.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Guangzhou Seagull Kitchen vs. Harbin Hatou Investment
Performance |
| Timeline |
| Guangzhou Seagull Kitchen |
| Harbin Hatou Investment |
Guangzhou Seagull and Harbin Hatou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Seagull and Harbin Hatou
The main advantage of trading using opposite Guangzhou Seagull and Harbin Hatou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Seagull position performs unexpectedly, Harbin Hatou 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 Harbin Hatou will offset losses from the drop in Harbin Hatou's long position.| Guangzhou Seagull vs. StarPower Semiconductor | Guangzhou Seagull vs. Chenzhou Jingui Silver | Guangzhou Seagull vs. Yuanjie Semiconductor Technology | Guangzhou Seagull vs. Hainan Airlines Co |
| Harbin Hatou vs. Shandong Homey Aquatic | Harbin Hatou vs. Sino Platinum Metals Co | Harbin Hatou vs. Nanxing Furniture Machinery | Harbin Hatou vs. AUPU Home Style |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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