Correlation Between Guangzhou Haige and Shandong Mining
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By analyzing existing cross correlation between Guangzhou Haige Communications and Shandong Mining Machinery, you can compare the effects of market volatilities on Guangzhou Haige and Shandong Mining 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 Shandong Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Shandong Mining.
Diversification Opportunities for Guangzhou Haige and Shandong Mining
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Shandong is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Shandong Mining Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Mining Machinery 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 Shandong Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Mining Machinery has no effect on the direction of Guangzhou Haige i.e., Guangzhou Haige and Shandong Mining go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Shandong Mining
Assuming the 90 days trading horizon Guangzhou Haige Communications is expected to generate 1.05 times more return on investment than Shandong Mining. However, Guangzhou Haige is 1.05 times more volatile than Shandong Mining Machinery. It trades about 0.04 of its potential returns per unit of risk. Shandong Mining Machinery is currently generating about 0.0 per unit of risk. If you would invest 1,083 in Guangzhou Haige Communications on August 29, 2024 and sell it today you would earn a total of 98.00 from holding Guangzhou Haige Communications or generate 9.05% 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. Shandong Mining Machinery
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Shandong Mining Machinery |
Guangzhou Haige and Shandong Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Shandong Mining
The main advantage of trading using opposite Guangzhou Haige and Shandong Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige position performs unexpectedly, Shandong Mining 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 Shandong Mining will offset losses from the drop in Shandong Mining'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 |
| Shandong Mining vs. Runjian Communication Co | Shandong Mining vs. GreenTech Environmental Co | Shandong Mining vs. Tongyu Communication | Shandong Mining vs. Guangzhou Haige Communications |
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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