Correlation Between Guangzhou Haige and Guangdong Shenglu
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By analyzing existing cross correlation between Guangzhou Haige Communications and Guangdong Shenglu Telecommunication, you can compare the effects of market volatilities on Guangzhou Haige and Guangdong Shenglu 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 Guangdong Shenglu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Guangdong Shenglu.
Diversification Opportunities for Guangzhou Haige and Guangdong Shenglu
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Guangdong is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Guangdong Shenglu Telecommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Shenglu 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 Guangdong Shenglu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Shenglu has no effect on the direction of Guangzhou Haige i.e., Guangzhou Haige and Guangdong Shenglu go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Guangdong Shenglu
Assuming the 90 days trading horizon Guangzhou Haige Communications is expected to generate 1.06 times more return on investment than Guangdong Shenglu. However, Guangzhou Haige is 1.06 times more volatile than Guangdong Shenglu Telecommunication. It trades about 0.08 of its potential returns per unit of risk. Guangdong Shenglu Telecommunication is currently generating about -0.01 per unit of risk. If you would invest 1,123 in Guangzhou Haige Communications on August 29, 2024 and sell it today you would earn a total of 58.00 from holding Guangzhou Haige Communications or generate 5.16% 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. Guangdong Shenglu Telecommunic
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Guangdong Shenglu |
Guangzhou Haige and Guangdong Shenglu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Guangdong Shenglu
The main advantage of trading using opposite Guangzhou Haige and Guangdong Shenglu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige position performs unexpectedly, Guangdong Shenglu 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 Guangdong Shenglu will offset losses from the drop in Guangdong Shenglu's long position.| Guangzhou Haige vs. Will Semiconductor Co | Guangzhou Haige vs. RoadMain T Co | Guangzhou Haige vs. Semiconductor Manufacturing Electronics | Guangzhou Haige vs. Guizhou BroadcastingTV Info |
| Guangdong Shenglu vs. Shenzhen MYS Environmental | Guangdong Shenglu vs. AVIC Fund Management | Guangdong Shenglu vs. Shenzhen Bingchuan Network | Guangdong Shenglu vs. Penghua Shenzhen Energy |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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