Correlation Between Guangzhou Haige and Gan Yuan
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By analyzing existing cross correlation between Guangzhou Haige Communications and Gan Yuan Foods, you can compare the effects of market volatilities on Guangzhou Haige and Gan Yuan 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 Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Gan Yuan.
Diversification Opportunities for Guangzhou Haige and Gan Yuan
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Gan is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan Foods 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 Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of Guangzhou Haige i.e., Guangzhou Haige and Gan Yuan go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Gan Yuan
Assuming the 90 days trading horizon Guangzhou Haige Communications is expected to generate 1.05 times more return on investment than Gan Yuan. However, Guangzhou Haige is 1.05 times more volatile than Gan Yuan Foods. It trades about 0.05 of its potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.02 per unit of risk. If you would invest 824.00 in Guangzhou Haige Communications on September 5, 2024 and sell it today you would earn a total of 451.00 from holding Guangzhou Haige Communications or generate 54.73% 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. Gan Yuan Foods
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Gan Yuan Foods |
Guangzhou Haige and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Gan Yuan
The main advantage of trading using opposite Guangzhou Haige and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan's long position.| Guangzhou Haige vs. Industrial and Commercial | Guangzhou Haige vs. China Construction Bank | Guangzhou Haige vs. Bank of China | Guangzhou Haige vs. Agricultural Bank of |
| Gan Yuan vs. Nanjing Putian Telecommunications | Gan Yuan vs. Inspur Software Co | Gan Yuan vs. Suzhou Mingzhi Technology | Gan Yuan vs. Guangzhou Haige Communications |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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