Correlation Between Guangzhou Haige and Jiangsu Xinning
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By analyzing existing cross correlation between Guangzhou Haige Communications and Jiangsu Xinning Modern, you can compare the effects of market volatilities on Guangzhou Haige and Jiangsu Xinning 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 Jiangsu Xinning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Jiangsu Xinning.
Diversification Opportunities for Guangzhou Haige and Jiangsu Xinning
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Jiangsu is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Jiangsu Xinning Modern in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinning Modern 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 Jiangsu Xinning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinning Modern has no effect on the direction of Guangzhou Haige i.e., Guangzhou Haige and Jiangsu Xinning go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Jiangsu Xinning
Assuming the 90 days trading horizon Guangzhou Haige Communications is expected to generate 0.64 times more return on investment than Jiangsu Xinning. However, Guangzhou Haige Communications is 1.55 times less risky than Jiangsu Xinning. It trades about 0.05 of its potential returns per unit of risk. Jiangsu Xinning Modern is currently generating about 0.0 per unit of risk. If you would invest 823.00 in Guangzhou Haige Communications on September 2, 2024 and sell it today you would earn a total of 457.00 from holding Guangzhou Haige Communications or generate 55.53% 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. Jiangsu Xinning Modern
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Jiangsu Xinning Modern |
Guangzhou Haige and Jiangsu Xinning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Jiangsu Xinning
The main advantage of trading using opposite Guangzhou Haige and Jiangsu Xinning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige position performs unexpectedly, Jiangsu Xinning 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 Jiangsu Xinning will offset losses from the drop in Jiangsu Xinning's long position.| Guangzhou Haige vs. Industrial and Commercial | Guangzhou Haige vs. Kweichow Moutai Co | Guangzhou Haige vs. Agricultural Bank of | Guangzhou Haige vs. China Mobile Limited |
| Jiangsu Xinning vs. Duzhe Publishing Media | Jiangsu Xinning vs. Allwin Telecommunication Co | Jiangsu Xinning vs. Songz Automobile Air | Jiangsu Xinning vs. Zotye Automobile 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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