Correlation Between Guangzhou Haige and China Reform
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By analyzing existing cross correlation between Guangzhou Haige Communications and China Reform Health, you can compare the effects of market volatilities on Guangzhou Haige and China Reform 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 China Reform. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and China Reform.
Diversification Opportunities for Guangzhou Haige and China Reform
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and China is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and China Reform Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Reform Health 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 China Reform. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Reform Health has no effect on the direction of Guangzhou Haige i.e., Guangzhou Haige and China Reform go up and down completely randomly.
Pair Corralation between Guangzhou Haige and China Reform
Assuming the 90 days trading horizon Guangzhou Haige Communications is expected to generate 0.8 times more return on investment than China Reform. However, Guangzhou Haige Communications is 1.25 times less risky than China Reform. It trades about 0.02 of its potential returns per unit of risk. China Reform Health is currently generating about 0.01 per unit of risk. If you would invest 985.00 in Guangzhou Haige Communications on October 16, 2024 and sell it today you would earn a total of 48.00 from holding Guangzhou Haige Communications or generate 4.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haige Communications vs. China Reform Health
Performance |
| Timeline |
| Guangzhou Haige Comm |
| China Reform Health |
Guangzhou Haige and China Reform Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and China Reform
The main advantage of trading using opposite Guangzhou Haige and China Reform positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige position performs unexpectedly, China Reform 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 China Reform will offset losses from the drop in China Reform's long position.| Guangzhou Haige vs. Shuhua Sports Co | Guangzhou Haige vs. Heilongjiang Transport Development | Guangzhou Haige vs. Eastern Communications Co | Guangzhou Haige vs. Sichuan Fulin Transportation |
| China Reform vs. Wuhan Yangtze Communication | China Reform vs. Guangzhou Haige Communications | China Reform vs. Guangxi Wuzhou Communications | China Reform vs. Zhejiang Kingland Pipeline |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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