Correlation Between Do Fluoride and Guangzhou Haozhi
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By analyzing existing cross correlation between Do Fluoride Chemicals Co and Guangzhou Haozhi Industrial, you can compare the effects of market volatilities on Do Fluoride 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 Do Fluoride with a short position of Guangzhou Haozhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Do Fluoride and Guangzhou Haozhi.
Diversification Opportunities for Do Fluoride and Guangzhou Haozhi
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 002407 and Guangzhou is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Do Fluoride Chemicals Co 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 Do Fluoride 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 Do Fluoride Chemicals Co 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 Do Fluoride i.e., Do Fluoride and Guangzhou Haozhi go up and down completely randomly.
Pair Corralation between Do Fluoride and Guangzhou Haozhi
Assuming the 90 days trading horizon Do Fluoride Chemicals Co is expected to under-perform the Guangzhou Haozhi. But the stock apears to be less risky and, when comparing its historical volatility, Do Fluoride Chemicals Co is 2.01 times less risky than Guangzhou Haozhi. The stock trades about -0.25 of its potential returns per unit of risk. The Guangzhou Haozhi Industrial is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,082 in Guangzhou Haozhi Industrial on October 28, 2024 and sell it today you would earn a total of 249.00 from holding Guangzhou Haozhi Industrial or generate 11.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Do Fluoride Chemicals Co vs. Guangzhou Haozhi Industrial
Performance |
| Timeline |
| Do Fluoride Chemicals |
| Guangzhou Haozhi Ind |
Do Fluoride and Guangzhou Haozhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Do Fluoride and Guangzhou Haozhi
The main advantage of trading using opposite Do Fluoride and Guangzhou Haozhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Do Fluoride 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.| Do Fluoride vs. Zijin Mining Group | Do Fluoride vs. Wanhua Chemical Group | Do Fluoride vs. Baoshan Iron Steel | Do Fluoride vs. Shandong Gold Mining |
| Guangzhou Haozhi vs. Vats Liquor Chain | Guangzhou Haozhi vs. Dongfeng Automobile Co | Guangzhou Haozhi vs. Duzhe Publishing Media | Guangzhou Haozhi vs. Changjiang Publishing Media |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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