Correlation Between Guangzhou Haige and Jilin Chemical
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By analyzing existing cross correlation between Guangzhou Haige Communications and Jilin Chemical Fibre, you can compare the effects of market volatilities on Guangzhou Haige and Jilin Chemical 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 Haige with a short position of Jilin Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Jilin Chemical.
Diversification Opportunities for Guangzhou Haige and Jilin Chemical
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Jilin is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Jilin Chemical Fibre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jilin Chemical Fibre and Guangzhou Haige 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 Haige Communications are associated (or correlated) with Jilin Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jilin Chemical Fibre has no effect on the direction of Guangzhou Haige i.e., Guangzhou Haige and Jilin Chemical go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Jilin Chemical
Assuming the 90 days trading horizon Guangzhou Haige Communications is expected to generate 0.95 times more return on investment than Jilin Chemical. However, Guangzhou Haige Communications is 1.05 times less risky than Jilin Chemical. It trades about 0.03 of its potential returns per unit of risk. Jilin Chemical Fibre is currently generating about -0.02 per unit of risk. If you would invest 846.00 in Guangzhou Haige Communications on October 15, 2024 and sell it today you would earn a total of 155.00 from holding Guangzhou Haige Communications or generate 18.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haige Communications vs. Jilin Chemical Fibre
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Jilin Chemical Fibre |
Guangzhou Haige and Jilin Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Jilin Chemical
The main advantage of trading using opposite Guangzhou Haige and Jilin Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige position performs unexpectedly, Jilin Chemical 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 Jilin Chemical will offset losses from the drop in Jilin Chemical's long position.| Guangzhou Haige vs. Uroica Mining Safety | Guangzhou Haige vs. ButOne Information Corp | Guangzhou Haige vs. Zhengzhou Coal Mining | Guangzhou Haige vs. Longmaster Information Tech |
| Jilin Chemical vs. Dezhan HealthCare Co | Jilin Chemical vs. Healthcare Co | Jilin Chemical vs. Shanghai Rongtai Health | Jilin Chemical vs. Iat Automobile Technology |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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