Correlation Between Guangzhou Haige and Sichuan Jinshi
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By analyzing existing cross correlation between Guangzhou Haige Communications and Sichuan Jinshi Technology, you can compare the effects of market volatilities on Guangzhou Haige and Sichuan Jinshi 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 Sichuan Jinshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Sichuan Jinshi.
Diversification Opportunities for Guangzhou Haige and Sichuan Jinshi
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Sichuan is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Sichuan Jinshi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Jinshi Technology 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 Sichuan Jinshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Jinshi Technology has no effect on the direction of Guangzhou Haige i.e., Guangzhou Haige and Sichuan Jinshi go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Sichuan Jinshi
Assuming the 90 days trading horizon Guangzhou Haige Communications is expected to under-perform the Sichuan Jinshi. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Haige Communications is 1.26 times less risky than Sichuan Jinshi. The stock trades about -0.19 of its potential returns per unit of risk. The Sichuan Jinshi Technology is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 668.00 in Sichuan Jinshi Technology on October 30, 2024 and sell it today you would lose (47.00) from holding Sichuan Jinshi Technology or give up 7.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haige Communications vs. Sichuan Jinshi Technology
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Sichuan Jinshi Technology |
Guangzhou Haige and Sichuan Jinshi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Sichuan Jinshi
The main advantage of trading using opposite Guangzhou Haige and Sichuan Jinshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige position performs unexpectedly, Sichuan Jinshi 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 Sichuan Jinshi will offset losses from the drop in Sichuan Jinshi's long position.| Guangzhou Haige vs. Bus Online Co | Guangzhou Haige vs. Holitech Technology Co | Guangzhou Haige vs. Gome Telecom Equipment | Guangzhou Haige vs. Cultural Investment Holdings |
| Sichuan Jinshi vs. Xiandai Investment Co | Sichuan Jinshi vs. Nuode Investment Co | Sichuan Jinshi vs. Harbin Hatou Investment | Sichuan Jinshi vs. Postal Savings Bank |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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