Correlation Between Guangzhou Haige and Fujian Rongji
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By analyzing existing cross correlation between Guangzhou Haige Communications and Fujian Rongji Software, you can compare the effects of market volatilities on Guangzhou Haige and Fujian Rongji 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 Fujian Rongji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Fujian Rongji.
Diversification Opportunities for Guangzhou Haige and Fujian Rongji
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Fujian is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Fujian Rongji Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Rongji Software 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 Fujian Rongji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Rongji Software has no effect on the direction of Guangzhou Haige i.e., Guangzhou Haige and Fujian Rongji go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Fujian Rongji
Assuming the 90 days trading horizon Guangzhou Haige is expected to generate 1.28 times less return on investment than Fujian Rongji. But when comparing it to its historical volatility, Guangzhou Haige Communications is 1.31 times less risky than Fujian Rongji. It trades about 0.16 of its potential returns per unit of risk. Fujian Rongji Software is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 609.00 in Fujian Rongji Software on September 4, 2024 and sell it today you would earn a total of 85.00 from holding Fujian Rongji Software or generate 13.96% 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. Fujian Rongji Software
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Fujian Rongji Software |
Guangzhou Haige and Fujian Rongji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Fujian Rongji
The main advantage of trading using opposite Guangzhou Haige and Fujian Rongji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige position performs unexpectedly, Fujian Rongji 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 Fujian Rongji will offset losses from the drop in Fujian Rongji's long position.| Guangzhou Haige vs. Industrial and Commercial | Guangzhou Haige vs. China Construction Bank | Guangzhou Haige vs. Bank of China | Guangzhou Haige vs. Agricultural Bank of |
| Fujian Rongji vs. New China Life | Fujian Rongji vs. Ming Yang Smart | Fujian Rongji vs. 159681 | Fujian Rongji vs. 159005 |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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