Correlation Between Guangzhou Haige and Suzhou Fushilai
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By analyzing existing cross correlation between Guangzhou Haige Communications and Suzhou Fushilai Pharmaceutical, you can compare the effects of market volatilities on Guangzhou Haige and Suzhou Fushilai 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 Suzhou Fushilai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Suzhou Fushilai.
Diversification Opportunities for Guangzhou Haige and Suzhou Fushilai
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Suzhou is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Suzhou Fushilai Pharmaceutical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Fushilai Phar 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 Suzhou Fushilai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Fushilai Phar has no effect on the direction of Guangzhou Haige i.e., Guangzhou Haige and Suzhou Fushilai go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Suzhou Fushilai
Assuming the 90 days trading horizon Guangzhou Haige Communications is expected to generate 0.71 times more return on investment than Suzhou Fushilai. However, Guangzhou Haige Communications is 1.41 times less risky than Suzhou Fushilai. It trades about 0.01 of its potential returns per unit of risk. Suzhou Fushilai Pharmaceutical is currently generating about 0.0 per unit of risk. If you would invest 1,359 in Guangzhou Haige Communications on September 14, 2024 and sell it today you would lose (76.00) from holding Guangzhou Haige Communications or give up 5.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.62% |
| Values | Daily Returns |
Guangzhou Haige Communications vs. Suzhou Fushilai Pharmaceutical
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Suzhou Fushilai Phar |
Guangzhou Haige and Suzhou Fushilai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Suzhou Fushilai
The main advantage of trading using opposite Guangzhou Haige and Suzhou Fushilai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige position performs unexpectedly, Suzhou Fushilai 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 Suzhou Fushilai will offset losses from the drop in Suzhou Fushilai's long position.| Guangzhou Haige vs. Changchun UP Optotech | Guangzhou Haige vs. Yunnan Copper Co | Guangzhou Haige vs. Kangping Technology Co | Guangzhou Haige vs. Peoples Insurance of |
| Suzhou Fushilai vs. Fujian Newland Computer | Suzhou Fushilai vs. Guangzhou Haige Communications | Suzhou Fushilai vs. Jinling Hotel Corp | Suzhou Fushilai vs. Tongyu Communication |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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