Correlation Between Guangdong Jingyi and Guangzhou Haozhi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Jingyi Metal and Guangzhou Haozhi Industrial, you can compare the effects of market volatilities on Guangdong Jingyi and Guangzhou Haozhi 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 Guangdong Jingyi with a short position of Guangzhou Haozhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Guangzhou Haozhi.
Diversification Opportunities for Guangdong Jingyi and Guangzhou Haozhi
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Guangzhou is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Guangzhou Haozhi Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haozhi Ind and Guangdong Jingyi 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 Guangdong Jingyi Metal are associated (or correlated) with Guangzhou Haozhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haozhi Ind has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Guangzhou Haozhi go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Guangzhou Haozhi
Assuming the 90 days trading horizon Guangdong Jingyi is expected to generate 4.67 times less return on investment than Guangzhou Haozhi. But when comparing it to its historical volatility, Guangdong Jingyi Metal is 1.23 times less risky than Guangzhou Haozhi. It trades about 0.01 of its potential returns per unit of risk. Guangzhou Haozhi Industrial is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,502 in Guangzhou Haozhi Industrial on August 25, 2024 and sell it today you would earn a total of 274.00 from holding Guangzhou Haozhi Industrial or generate 18.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Guangzhou Haozhi Industrial
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Guangzhou Haozhi Ind |
Guangdong Jingyi and Guangzhou Haozhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Guangzhou Haozhi
The main advantage of trading using opposite Guangdong Jingyi and Guangzhou Haozhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Guangzhou Haozhi 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 Haozhi will offset losses from the drop in Guangzhou Haozhi's long position.| Guangdong Jingyi vs. Zijin Mining Group | Guangdong Jingyi vs. Wanhua Chemical Group | Guangdong Jingyi vs. Baoshan Iron Steel | Guangdong Jingyi vs. Rongsheng Petrochemical Co |
| Guangzhou Haozhi vs. Biwin Storage Technology | Guangzhou Haozhi vs. PetroChina Co Ltd | Guangzhou Haozhi vs. Industrial and Commercial | Guangzhou Haozhi 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |