Correlation Between Guangzhou Haige and Xinjiang Communications
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By analyzing existing cross correlation between Guangzhou Haige Communications and Xinjiang Communications Construction, you can compare the effects of market volatilities on Guangzhou Haige and Xinjiang Communications 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 Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Xinjiang Communications.
Diversification Opportunities for Guangzhou Haige and Xinjiang Communications
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Xinjiang is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications 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 Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Communications has no effect on the direction of Guangzhou Haige i.e., Guangzhou Haige and Xinjiang Communications go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Xinjiang Communications
Assuming the 90 days trading horizon Guangzhou Haige is expected to generate 1.18 times less return on investment than Xinjiang Communications. In addition to that, Guangzhou Haige is 1.24 times more volatile than Xinjiang Communications Construction. It trades about 0.14 of its total potential returns per unit of risk. Xinjiang Communications Construction is currently generating about 0.2 per unit of volatility. If you would invest 1,129 in Xinjiang Communications Construction on August 31, 2024 and sell it today you would earn a total of 141.00 from holding Xinjiang Communications Construction or generate 12.49% 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. Xinjiang Communications Constr
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Xinjiang Communications |
Guangzhou Haige and Xinjiang Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Xinjiang Communications
The main advantage of trading using opposite Guangzhou Haige and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige position performs unexpectedly, Xinjiang Communications 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 Communications will offset losses from the drop in Xinjiang Communications' long position.| Guangzhou Haige vs. Kweichow Moutai Co | Guangzhou Haige vs. NAURA Technology Group | Guangzhou Haige vs. APT Medical | Guangzhou Haige vs. Contemporary Amperex Technology |
| Xinjiang Communications vs. Cultural Investment Holdings | Xinjiang Communications vs. Gome Telecom Equipment | Xinjiang Communications vs. Bus Online Co | Xinjiang Communications vs. Holitech Technology 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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