Correlation Between Guangzhou Zhujiang and Haima Automobile
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By analyzing existing cross correlation between Guangzhou Zhujiang Brewery and Haima Automobile Group, you can compare the effects of market volatilities on Guangzhou Zhujiang and Haima Automobile 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 Zhujiang with a short position of Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Zhujiang and Haima Automobile.
Diversification Opportunities for Guangzhou Zhujiang and Haima Automobile
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Haima is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Zhujiang Brewery and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile and Guangzhou Zhujiang 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 Zhujiang Brewery are associated (or correlated) with Haima Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haima Automobile has no effect on the direction of Guangzhou Zhujiang i.e., Guangzhou Zhujiang and Haima Automobile go up and down completely randomly.
Pair Corralation between Guangzhou Zhujiang and Haima Automobile
Assuming the 90 days trading horizon Guangzhou Zhujiang Brewery is expected to generate 0.48 times more return on investment than Haima Automobile. However, Guangzhou Zhujiang Brewery is 2.08 times less risky than Haima Automobile. It trades about 0.03 of its potential returns per unit of risk. Haima Automobile Group is currently generating about 0.01 per unit of risk. If you would invest 785.00 in Guangzhou Zhujiang Brewery on September 3, 2024 and sell it today you would earn a total of 129.00 from holding Guangzhou Zhujiang Brewery or generate 16.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Zhujiang Brewery vs. Haima Automobile Group
Performance |
| Timeline |
| Guangzhou Zhujiang |
| Haima Automobile |
Guangzhou Zhujiang and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Zhujiang and Haima Automobile
The main advantage of trading using opposite Guangzhou Zhujiang and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Zhujiang position performs unexpectedly, Haima Automobile 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 Haima Automobile will offset losses from the drop in Haima Automobile's long position.| Guangzhou Zhujiang vs. Beijing Wantai Biological | Guangzhou Zhujiang vs. Aluminum Corp of | Guangzhou Zhujiang vs. COL Digital Publishing | Guangzhou Zhujiang vs. Shaanxi Meineng Clean |
| Haima Automobile vs. Hainan Haiqi Transportation | Haima Automobile vs. Guangdong Brandmax Marketing | Haima Automobile vs. Zhejiang Daily Media | Haima Automobile vs. Heilongjiang 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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