Correlation Between Guangzhou Haige and Xinjiang Tianshun
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By analyzing existing cross correlation between Guangzhou Haige Communications and Xinjiang Tianshun Supply, you can compare the effects of market volatilities on Guangzhou Haige and Xinjiang Tianshun 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 Xinjiang Tianshun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Xinjiang Tianshun.
Diversification Opportunities for Guangzhou Haige and Xinjiang Tianshun
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Xinjiang is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Xinjiang Tianshun Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianshun Supply 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 Xinjiang Tianshun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianshun Supply has no effect on the direction of Guangzhou Haige i.e., Guangzhou Haige and Xinjiang Tianshun go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Xinjiang Tianshun
Assuming the 90 days trading horizon Guangzhou Haige Communications is expected to generate 1.04 times more return on investment than Xinjiang Tianshun. However, Guangzhou Haige is 1.04 times more volatile than Xinjiang Tianshun Supply. It trades about 0.04 of its potential returns per unit of risk. Xinjiang Tianshun Supply is currently generating about 0.03 per unit of risk. If you would invest 979.00 in Guangzhou Haige Communications on September 12, 2024 and sell it today you would earn a total of 294.00 from holding Guangzhou Haige Communications or generate 30.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.71% |
| Values | Daily Returns |
Guangzhou Haige Communications vs. Xinjiang Tianshun Supply
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Xinjiang Tianshun Supply |
Guangzhou Haige and Xinjiang Tianshun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Xinjiang Tianshun
The main advantage of trading using opposite Guangzhou Haige and Xinjiang Tianshun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige position performs unexpectedly, Xinjiang Tianshun 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 Xinjiang Tianshun will offset losses from the drop in Xinjiang Tianshun's long position.| Guangzhou Haige vs. Gansu Jiu Steel | Guangzhou Haige vs. Shandong Mining Machinery | Guangzhou Haige vs. Aba Chemicals Corp | Guangzhou Haige vs. BlueFocus Communication Group |
| Xinjiang Tianshun vs. Beijing SPC Environment | Xinjiang Tianshun vs. Hang Xiao Steel | Xinjiang Tianshun vs. King Strong New Material | Xinjiang Tianshun vs. Tianjin Capital Environmental |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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