Correlation Between Guangzhou Haige and Ningbo Fangzheng
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou Haige Communications and Ningbo Fangzheng Automobile, you can compare the effects of market volatilities on Guangzhou Haige and Ningbo Fangzheng 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 Ningbo Fangzheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Ningbo Fangzheng.
Diversification Opportunities for Guangzhou Haige and Ningbo Fangzheng
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Ningbo is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Ningbo Fangzheng Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Fangzheng Aut 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 Ningbo Fangzheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Fangzheng Aut has no effect on the direction of Guangzhou Haige i.e., Guangzhou Haige and Ningbo Fangzheng go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Ningbo Fangzheng
Assuming the 90 days trading horizon Guangzhou Haige Communications is expected to under-perform the Ningbo Fangzheng. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Haige Communications is 1.36 times less risky than Ningbo Fangzheng. The stock trades about -0.48 of its potential returns per unit of risk. The Ningbo Fangzheng Automobile is currently generating about -0.29 of returns per unit of risk over similar time horizon. If you would invest 1,807 in Ningbo Fangzheng Automobile on October 12, 2024 and sell it today you would lose (298.00) from holding Ningbo Fangzheng Automobile or give up 16.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haige Communications vs. Ningbo Fangzheng Automobile
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Ningbo Fangzheng Aut |
Guangzhou Haige and Ningbo Fangzheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Ningbo Fangzheng
The main advantage of trading using opposite Guangzhou Haige and Ningbo Fangzheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige position performs unexpectedly, Ningbo Fangzheng 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 Ningbo Fangzheng will offset losses from the drop in Ningbo Fangzheng's long position.| Guangzhou Haige vs. Fujian Newland Computer | Guangzhou Haige vs. China Sports Industry | Guangzhou Haige vs. Guangdong Qunxing Toys | Guangzhou Haige vs. ChengDu Hi Tech Development |
| Ningbo Fangzheng vs. Fujian Longzhou Transportation | Ningbo Fangzheng vs. ROPEOK Technology Group | Ningbo Fangzheng vs. Sinofibers Technology Co | Ningbo Fangzheng vs. Tianshui Huatian Technology |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |