Correlation Between Guangzhou Zhujiang and HanS Laser
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By analyzing existing cross correlation between Guangzhou Zhujiang Brewery and HanS Laser Tech, you can compare the effects of market volatilities on Guangzhou Zhujiang and HanS Laser 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 HanS Laser. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Zhujiang and HanS Laser.
Diversification Opportunities for Guangzhou Zhujiang and HanS Laser
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and HanS is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Zhujiang Brewery and HanS Laser Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HanS Laser Tech 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 HanS Laser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HanS Laser Tech has no effect on the direction of Guangzhou Zhujiang i.e., Guangzhou Zhujiang and HanS Laser go up and down completely randomly.
Pair Corralation between Guangzhou Zhujiang and HanS Laser
Assuming the 90 days trading horizon Guangzhou Zhujiang is expected to generate 5.47 times less return on investment than HanS Laser. But when comparing it to its historical volatility, Guangzhou Zhujiang Brewery is 1.47 times less risky than HanS Laser. It trades about 0.05 of its potential returns per unit of risk. HanS Laser Tech is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,897 in HanS Laser Tech on September 4, 2024 and sell it today you would earn a total of 782.00 from holding HanS Laser Tech or generate 41.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Zhujiang Brewery vs. HanS Laser Tech
Performance |
| Timeline |
| Guangzhou Zhujiang |
| HanS Laser Tech |
Guangzhou Zhujiang and HanS Laser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Zhujiang and HanS Laser
The main advantage of trading using opposite Guangzhou Zhujiang and HanS Laser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Zhujiang position performs unexpectedly, HanS Laser 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 HanS Laser will offset losses from the drop in HanS Laser's long position.| Guangzhou Zhujiang vs. Hefei Metalforming Mach | Guangzhou Zhujiang vs. Jiangsu Yanghe Brewery | Guangzhou Zhujiang vs. Ye Chiu Metal | Guangzhou Zhujiang vs. Liuzhou Chemical Industry |
| HanS Laser vs. Chengdu Kanghua Biological | HanS Laser vs. Beijing Wantai Biological | HanS Laser vs. Suzhou Novoprotein Scientific | HanS Laser vs. Aluminum Corp of |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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