Correlation Between Guangdong Shenglu and Huaxia Eye
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Huaxia Eye Hospital, you can compare the effects of market volatilities on Guangdong Shenglu and Huaxia Eye 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 Shenglu with a short position of Huaxia Eye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Huaxia Eye.
Diversification Opportunities for Guangdong Shenglu and Huaxia Eye
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Huaxia is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and Huaxia Eye Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaxia Eye Hospital and Guangdong Shenglu 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 Shenglu Telecommunication are associated (or correlated) with Huaxia Eye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaxia Eye Hospital has no effect on the direction of Guangdong Shenglu i.e., Guangdong Shenglu and Huaxia Eye go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Huaxia Eye
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to under-perform the Huaxia Eye. In addition to that, Guangdong Shenglu is 2.34 times more volatile than Huaxia Eye Hospital. It trades about -0.26 of its total potential returns per unit of risk. Huaxia Eye Hospital is currently generating about -0.42 per unit of volatility. If you would invest 1,979 in Huaxia Eye Hospital on October 30, 2024 and sell it today you would lose (222.00) from holding Huaxia Eye Hospital or give up 11.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Huaxia Eye Hospital
Performance |
| Timeline |
| Guangdong Shenglu |
| Huaxia Eye Hospital |
Guangdong Shenglu and Huaxia Eye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Huaxia Eye
The main advantage of trading using opposite Guangdong Shenglu and Huaxia Eye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu position performs unexpectedly, Huaxia Eye 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 Huaxia Eye will offset losses from the drop in Huaxia Eye's long position.| Guangdong Shenglu vs. Jiangsu Yueda Investment | Guangdong Shenglu vs. Shandong Longquan Pipeline | Guangdong Shenglu vs. Zoje Resources Investment | Guangdong Shenglu vs. Zhejiang Kingland Pipeline |
| Huaxia Eye vs. Bank of China | Huaxia Eye vs. Kweichow Moutai Co | Huaxia Eye vs. PetroChina Co Ltd | Huaxia Eye vs. Bank of Communications |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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