Correlation Between Guangzhou Haige and Hubeiyichang Transportation
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By analyzing existing cross correlation between Guangzhou Haige Communications and Hubeiyichang Transportation Group, you can compare the effects of market volatilities on Guangzhou Haige and Hubeiyichang Transportation 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 Hubeiyichang Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Hubeiyichang Transportation.
Diversification Opportunities for Guangzhou Haige and Hubeiyichang Transportation
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Hubeiyichang is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Hubeiyichang Transportation Gr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubeiyichang Transportation 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 Hubeiyichang Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubeiyichang Transportation has no effect on the direction of Guangzhou Haige i.e., Guangzhou Haige and Hubeiyichang Transportation go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Hubeiyichang Transportation
Assuming the 90 days trading horizon Guangzhou Haige Communications is expected to generate 2.5 times more return on investment than Hubeiyichang Transportation. However, Guangzhou Haige is 2.5 times more volatile than Hubeiyichang Transportation Group. It trades about 0.09 of its potential returns per unit of risk. Hubeiyichang Transportation Group is currently generating about -0.02 per unit of risk. If you would invest 1,123 in Guangzhou Haige Communications on August 27, 2024 and sell it today you would earn a total of 64.00 from holding Guangzhou Haige Communications or generate 5.7% 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. Hubeiyichang Transportation Gr
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Hubeiyichang Transportation |
Guangzhou Haige and Hubeiyichang Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Hubeiyichang Transportation
The main advantage of trading using opposite Guangzhou Haige and Hubeiyichang Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige position performs unexpectedly, Hubeiyichang Transportation 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 Hubeiyichang Transportation will offset losses from the drop in Hubeiyichang Transportation's long position.| Guangzhou Haige vs. Shenzhen MYS Environmental | Guangzhou Haige vs. AVIC Fund Management | Guangzhou Haige vs. Shenzhen Bingchuan Network | Guangzhou Haige 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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