Correlation Between Guangzhou Haige and Chengdu Spaceon
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By analyzing existing cross correlation between Guangzhou Haige Communications and Chengdu Spaceon Electronics, you can compare the effects of market volatilities on Guangzhou Haige and Chengdu Spaceon 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 Chengdu Spaceon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Chengdu Spaceon.
Diversification Opportunities for Guangzhou Haige and Chengdu Spaceon
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Chengdu is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Chengdu Spaceon Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Spaceon Elec 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 Chengdu Spaceon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Spaceon Elec has no effect on the direction of Guangzhou Haige i.e., Guangzhou Haige and Chengdu Spaceon go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Chengdu Spaceon
Assuming the 90 days trading horizon Guangzhou Haige Communications is expected to generate 1.04 times more return on investment than Chengdu Spaceon. However, Guangzhou Haige is 1.04 times more volatile than Chengdu Spaceon Electronics. It trades about 0.09 of its potential returns per unit of risk. Chengdu Spaceon Electronics is currently generating about 0.08 per unit of risk. If you would invest 822.00 in Guangzhou Haige Communications on October 18, 2024 and sell it today you would earn a total of 179.00 from holding Guangzhou Haige Communications or generate 21.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haige Communications vs. Chengdu Spaceon Electronics
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Chengdu Spaceon Elec |
Guangzhou Haige and Chengdu Spaceon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Chengdu Spaceon
The main advantage of trading using opposite Guangzhou Haige and Chengdu Spaceon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige position performs unexpectedly, Chengdu Spaceon 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 Chengdu Spaceon will offset losses from the drop in Chengdu Spaceon's long position.| Guangzhou Haige vs. Industrial Bank Co | Guangzhou Haige vs. Southern PublishingMedia Co | Guangzhou Haige vs. Thinkingdom Media Group | Guangzhou Haige vs. Hengdian Entertainment Co |
| Chengdu Spaceon vs. Anhui Shiny Electronic | Chengdu Spaceon vs. Anhui Jianghuai Automobile | Chengdu Spaceon vs. Ningbo Fangzheng Automobile | Chengdu Spaceon vs. Xinya Electronic Co |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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