Correlation Between Guangzhou Haige and Anshan Senyuan
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By analyzing existing cross correlation between Guangzhou Haige Communications and Anshan Senyuan Road, you can compare the effects of market volatilities on Guangzhou Haige and Anshan Senyuan 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 Anshan Senyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Anshan Senyuan.
Diversification Opportunities for Guangzhou Haige and Anshan Senyuan
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Anshan is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Anshan Senyuan Road in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anshan Senyuan Road 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 Anshan Senyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anshan Senyuan Road has no effect on the direction of Guangzhou Haige i.e., Guangzhou Haige and Anshan Senyuan go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Anshan Senyuan
Assuming the 90 days trading horizon Guangzhou Haige Communications is expected to generate 0.71 times more return on investment than Anshan Senyuan. However, Guangzhou Haige Communications is 1.42 times less risky than Anshan Senyuan. It trades about -0.24 of its potential returns per unit of risk. Anshan Senyuan Road is currently generating about -0.2 per unit of risk. If you would invest 1,280 in Guangzhou Haige Communications on October 30, 2024 and sell it today you would lose (247.00) from holding Guangzhou Haige Communications or give up 19.3% 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. Anshan Senyuan Road
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Anshan Senyuan Road |
Guangzhou Haige and Anshan Senyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Anshan Senyuan
The main advantage of trading using opposite Guangzhou Haige and Anshan Senyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige position performs unexpectedly, Anshan Senyuan 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 Anshan Senyuan will offset losses from the drop in Anshan Senyuan'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 |
| Anshan Senyuan vs. Agricultural Bank of | Anshan Senyuan vs. Sportsoul Co Ltd | Anshan Senyuan vs. Panda Financial Holding | Anshan Senyuan vs. Jiangsu Financial Leasing |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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