Correlation Between Guangzhou Haige and Shenyang Blue
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By analyzing existing cross correlation between Guangzhou Haige Communications and Shenyang Blue Silver, you can compare the effects of market volatilities on Guangzhou Haige and Shenyang Blue 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 Shenyang Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Shenyang Blue.
Diversification Opportunities for Guangzhou Haige and Shenyang Blue
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Shenyang is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Shenyang Blue Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Blue Silver 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 Shenyang Blue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Blue Silver has no effect on the direction of Guangzhou Haige i.e., Guangzhou Haige and Shenyang Blue go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Shenyang Blue
Assuming the 90 days trading horizon Guangzhou Haige Communications is expected to under-perform the Shenyang Blue. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Haige Communications is 1.79 times less risky than Shenyang Blue. The stock trades about 0.0 of its potential returns per unit of risk. The Shenyang Blue Silver is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,463 in Shenyang Blue Silver on October 16, 2024 and sell it today you would earn a total of 733.00 from holding Shenyang Blue Silver or generate 50.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haige Communications vs. Shenyang Blue Silver
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Shenyang Blue Silver |
Guangzhou Haige and Shenyang Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Shenyang Blue
The main advantage of trading using opposite Guangzhou Haige and Shenyang Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige position performs unexpectedly, Shenyang Blue 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 Shenyang Blue will offset losses from the drop in Shenyang Blue's long position.| Guangzhou Haige vs. Shuhua Sports Co | Guangzhou Haige vs. Heilongjiang Transport Development | Guangzhou Haige vs. Eastern Communications Co | Guangzhou Haige vs. Sichuan Fulin Transportation |
| Shenyang Blue vs. Songz Automobile Air | Shenyang Blue vs. Tongyu Communication | Shenyang Blue vs. Gansu Huangtai Wine marketing | Shenyang Blue vs. Ningbo Fangzheng Automobile |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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