Correlation Between Guangzhou Haige and Jiangxi Naipu
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By analyzing existing cross correlation between Guangzhou Haige Communications and Jiangxi Naipu Mining, you can compare the effects of market volatilities on Guangzhou Haige and Jiangxi Naipu 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 Jiangxi Naipu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Jiangxi Naipu.
Diversification Opportunities for Guangzhou Haige and Jiangxi Naipu
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Jiangxi is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Jiangxi Naipu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Naipu Mining 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 Jiangxi Naipu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Naipu Mining has no effect on the direction of Guangzhou Haige i.e., Guangzhou Haige and Jiangxi Naipu go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Jiangxi Naipu
Assuming the 90 days trading horizon Guangzhou Haige Communications is expected to under-perform the Jiangxi Naipu. In addition to that, Guangzhou Haige is 1.26 times more volatile than Jiangxi Naipu Mining. It trades about -0.19 of its total potential returns per unit of risk. Jiangxi Naipu Mining is currently generating about -0.2 per unit of volatility. If you would invest 2,791 in Jiangxi Naipu Mining on October 30, 2024 and sell it today you would lose (204.00) from holding Jiangxi Naipu Mining or give up 7.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haige Communications vs. Jiangxi Naipu Mining
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Jiangxi Naipu Mining |
Guangzhou Haige and Jiangxi Naipu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Jiangxi Naipu
The main advantage of trading using opposite Guangzhou Haige and Jiangxi Naipu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige position performs unexpectedly, Jiangxi Naipu 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 Jiangxi Naipu will offset losses from the drop in Jiangxi Naipu'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 |
| Jiangxi Naipu vs. Advanced Technology Materials | Jiangxi Naipu vs. Shanghai Rightongene Biotechnology | Jiangxi Naipu vs. Jiangnan Mould Plastic | Jiangxi Naipu vs. Jiangsu GDK Biotechnology |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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