Correlation Between Guangzhou Haige and Huaxia Eye
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By analyzing existing cross correlation between Guangzhou Haige Communications and Huaxia Eye Hospital, you can compare the effects of market volatilities on Guangzhou Haige and Huaxia Eye 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 Huaxia Eye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Huaxia Eye.
Diversification Opportunities for Guangzhou Haige and Huaxia Eye
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Huaxia is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Huaxia Eye Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaxia Eye Hospital 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 Huaxia Eye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaxia Eye Hospital has no effect on the direction of Guangzhou Haige i.e., Guangzhou Haige and Huaxia Eye go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Huaxia Eye
Assuming the 90 days trading horizon Guangzhou Haige Communications is expected to generate 0.78 times more return on investment than Huaxia Eye. However, Guangzhou Haige Communications is 1.28 times less risky than Huaxia Eye. It trades about 0.03 of its potential returns per unit of risk. Huaxia Eye Hospital is currently generating about -0.01 per unit of risk. If you would invest 949.00 in Guangzhou Haige Communications on October 18, 2024 and sell it today you would earn a total of 52.00 from holding Guangzhou Haige Communications or generate 5.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haige Communications vs. Huaxia Eye Hospital
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Huaxia Eye Hospital |
Guangzhou Haige and Huaxia Eye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Huaxia Eye
The main advantage of trading using opposite Guangzhou Haige and Huaxia Eye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige position performs unexpectedly, Huaxia Eye 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 Huaxia Eye will offset losses from the drop in Huaxia Eye's long position.| Guangzhou Haige vs. Shanghai Yanpu Metal | Guangzhou Haige vs. Rising Nonferrous Metals | Guangzhou Haige vs. Uroica Mining Safety | Guangzhou Haige vs. Jinlong Machinery Electronic |
| Huaxia Eye vs. China Satellite Communications | Huaxia Eye vs. Lecron Energy Saving | Huaxia Eye vs. Guangzhou Haige Communications | Huaxia Eye vs. Industrial Bank Co |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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