Correlation Between Guangzhou Haige and HanS Laser
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By analyzing existing cross correlation between Guangzhou Haige Communications and HanS Laser Tech, you can compare the effects of market volatilities on Guangzhou Haige 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 Haige with a short position of HanS Laser. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and HanS Laser.
Diversification Opportunities for Guangzhou Haige and HanS Laser
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and HanS is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications 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 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 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 Haige i.e., Guangzhou Haige and HanS Laser go up and down completely randomly.
Pair Corralation between Guangzhou Haige and HanS Laser
Assuming the 90 days trading horizon Guangzhou Haige Communications is expected to generate 1.15 times more return on investment than HanS Laser. However, Guangzhou Haige is 1.15 times more volatile than HanS Laser Tech. It trades about 0.04 of its potential returns per unit of risk. HanS Laser Tech is currently generating about 0.02 per unit of risk. If you would invest 1,006 in Guangzhou Haige Communications on September 12, 2024 and sell it today you would earn a total of 267.00 from holding Guangzhou Haige Communications or generate 26.54% 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. HanS Laser Tech
Performance |
| Timeline |
| Guangzhou Haige Comm |
| HanS Laser Tech |
Guangzhou Haige and HanS Laser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and HanS Laser
The main advantage of trading using opposite Guangzhou Haige and HanS Laser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige 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 Haige vs. Gansu Jiu Steel | Guangzhou Haige vs. Shandong Mining Machinery | Guangzhou Haige vs. Aba Chemicals Corp | Guangzhou Haige vs. BlueFocus Communication Group |
| HanS Laser vs. Agricultural Bank of | HanS Laser vs. Industrial and Commercial | HanS Laser vs. Bank of China | HanS Laser vs. PetroChina Co Ltd |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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