Correlation Between Guangzhou Haige and Allwin Telecommunicatio
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By analyzing existing cross correlation between Guangzhou Haige Communications and Allwin Telecommunication Co, you can compare the effects of market volatilities on Guangzhou Haige and Allwin Telecommunicatio 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 Allwin Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Allwin Telecommunicatio.
Diversification Opportunities for Guangzhou Haige and Allwin Telecommunicatio
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Allwin is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Allwin Telecommunication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allwin Telecommunicatio 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 Allwin Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allwin Telecommunicatio has no effect on the direction of Guangzhou Haige i.e., Guangzhou Haige and Allwin Telecommunicatio go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Allwin Telecommunicatio
Assuming the 90 days trading horizon Guangzhou Haige Communications is expected to generate 0.84 times more return on investment than Allwin Telecommunicatio. However, Guangzhou Haige Communications is 1.19 times less risky than Allwin Telecommunicatio. It trades about 0.12 of its potential returns per unit of risk. Allwin Telecommunication Co is currently generating about -0.07 per unit of risk. If you would invest 1,099 in Guangzhou Haige Communications on August 25, 2024 and sell it today you would earn a total of 88.00 from holding Guangzhou Haige Communications or generate 8.01% 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. Allwin Telecommunication Co
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Allwin Telecommunicatio |
Guangzhou Haige and Allwin Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Allwin Telecommunicatio
The main advantage of trading using opposite Guangzhou Haige and Allwin Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige position performs unexpectedly, Allwin Telecommunicatio 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 Allwin Telecommunicatio will offset losses from the drop in Allwin Telecommunicatio's long position.| Guangzhou Haige vs. Shanghai Rongtai Health | Guangzhou Haige vs. Shandong Sinoglory Health | Guangzhou Haige vs. Suzhou Mingzhi Technology | Guangzhou Haige vs. Yunnan Jianzhijia Health Chain |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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