Correlation Between Guangzhou Haige and Shaanxi Meineng
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By analyzing existing cross correlation between Guangzhou Haige Communications and Shaanxi Meineng Clean, you can compare the effects of market volatilities on Guangzhou Haige and Shaanxi Meineng 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 Shaanxi Meineng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Shaanxi Meineng.
Diversification Opportunities for Guangzhou Haige and Shaanxi Meineng
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Shaanxi is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Shaanxi Meineng Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Meineng Clean 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 Shaanxi Meineng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Meineng Clean has no effect on the direction of Guangzhou Haige i.e., Guangzhou Haige and Shaanxi Meineng go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Shaanxi Meineng
Assuming the 90 days trading horizon Guangzhou Haige Communications is expected to generate 1.3 times more return on investment than Shaanxi Meineng. However, Guangzhou Haige is 1.3 times more volatile than Shaanxi Meineng Clean. It trades about 0.04 of its potential returns per unit of risk. Shaanxi Meineng Clean is currently generating about 0.04 per unit of risk. If you would invest 956.00 in Guangzhou Haige Communications on November 3, 2024 and sell it today you would earn a total of 77.00 from holding Guangzhou Haige Communications or generate 8.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haige Communications vs. Shaanxi Meineng Clean
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Shaanxi Meineng Clean |
Guangzhou Haige and Shaanxi Meineng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Shaanxi Meineng
The main advantage of trading using opposite Guangzhou Haige and Shaanxi Meineng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige position performs unexpectedly, Shaanxi Meineng 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 Shaanxi Meineng will offset losses from the drop in Shaanxi Meineng's long position.| Guangzhou Haige vs. Zbit Semiconductor A | Guangzhou Haige vs. Chengdu Xingrong Investment | Guangzhou Haige vs. Suzhou Oriental Semiconductor | Guangzhou Haige vs. Shanghai Material Trading |
| Shaanxi Meineng vs. Offshore Oil Engineering | Shaanxi Meineng vs. Air China Ltd | Shaanxi Meineng vs. Linewell Software Co | Shaanxi Meineng vs. HanS Laser Tech |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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