Correlation Between Guangzhou Haige and Maoming Petro
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By analyzing existing cross correlation between Guangzhou Haige Communications and Maoming Petro Chemical Shihua, you can compare the effects of market volatilities on Guangzhou Haige and Maoming Petro 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 Maoming Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Maoming Petro.
Diversification Opportunities for Guangzhou Haige and Maoming Petro
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Maoming is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Maoming Petro Chemical Shihua in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maoming Petro Chemical 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 Maoming Petro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maoming Petro Chemical has no effect on the direction of Guangzhou Haige i.e., Guangzhou Haige and Maoming Petro go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Maoming Petro
Assuming the 90 days trading horizon Guangzhou Haige Communications is expected to generate 1.1 times more return on investment than Maoming Petro. However, Guangzhou Haige is 1.1 times more volatile than Maoming Petro Chemical Shihua. It trades about 0.03 of its potential returns per unit of risk. Maoming Petro Chemical Shihua is currently generating about -0.02 per unit of risk. If you would invest 860.00 in Guangzhou Haige Communications on October 28, 2024 and sell it today you would earn a total of 187.00 from holding Guangzhou Haige Communications or generate 21.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haige Communications vs. Maoming Petro Chemical Shihua
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Maoming Petro Chemical |
Guangzhou Haige and Maoming Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Maoming Petro
The main advantage of trading using opposite Guangzhou Haige and Maoming Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige position performs unexpectedly, Maoming Petro 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 Maoming Petro will offset losses from the drop in Maoming Petro's long position.| Guangzhou Haige vs. Suzhou Weizhixiang Food | Guangzhou Haige vs. Guangzhou Seagull Kitchen | Guangzhou Haige vs. Ligao Foods CoLtd | Guangzhou Haige vs. Gem Year Industrial Co |
| Maoming Petro vs. Meinian Onehealth Healthcare | Maoming Petro vs. Youngy Health Co | Maoming Petro vs. Shanghai Yaoji Playing | Maoming Petro vs. Goodwill E Health |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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