Correlation Between Guangdong Shenglu and Hua Xia
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Hua Xia Bank, you can compare the effects of market volatilities on Guangdong Shenglu and Hua Xia 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 Hua Xia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Hua Xia.
Diversification Opportunities for Guangdong Shenglu and Hua Xia
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangdong and Hua is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and Hua Xia Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hua Xia Bank 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 Hua Xia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hua Xia Bank has no effect on the direction of Guangdong Shenglu i.e., Guangdong Shenglu and Hua Xia go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Hua Xia
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to under-perform the Hua Xia. In addition to that, Guangdong Shenglu is 2.47 times more volatile than Hua Xia Bank. It trades about -0.26 of its total potential returns per unit of risk. Hua Xia Bank is currently generating about -0.23 per unit of volatility. If you would invest 810.00 in Hua Xia Bank on October 30, 2024 and sell it today you would lose (50.00) from holding Hua Xia Bank or give up 6.17% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Hua Xia Bank
Performance |
Timeline |
Guangdong Shenglu |
Hua Xia Bank |
Guangdong Shenglu and Hua Xia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangdong Shenglu and Hua Xia
The main advantage of trading using opposite Guangdong Shenglu and Hua Xia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu position performs unexpectedly, Hua Xia 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 Hua Xia will offset losses from the drop in Hua Xia'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 |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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