Correlation Between Guangzhou Haige and Hua Xia
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By analyzing existing cross correlation between Guangzhou Haige Communications and Hua Xia Bank, you can compare the effects of market volatilities on Guangzhou Haige and Hua Xia 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 Hua Xia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Hua Xia.
Diversification Opportunities for Guangzhou Haige and Hua Xia
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangzhou and Hua is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Hua Xia Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hua Xia Bank 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 Hua Xia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hua Xia Bank has no effect on the direction of Guangzhou Haige i.e., Guangzhou Haige and Hua Xia go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Hua Xia
Assuming the 90 days trading horizon Guangzhou Haige is expected to generate 1.06 times less return on investment than Hua Xia. In addition to that, Guangzhou Haige is 1.77 times more volatile than Hua Xia Bank. It trades about 0.03 of its total potential returns per unit of risk. Hua Xia Bank is currently generating about 0.06 per unit of volatility. If you would invest 603.00 in Hua Xia Bank on October 29, 2024 and sell it today you would earn a total of 140.00 from holding Hua Xia Bank or generate 23.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haige Communications vs. Hua Xia Bank
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Hua Xia Bank |
Guangzhou Haige and Hua Xia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Hua Xia
The main advantage of trading using opposite Guangzhou Haige and Hua Xia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige position performs unexpectedly, Hua Xia 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 Hua Xia will offset losses from the drop in Hua Xia's long position.| Guangzhou Haige vs. Ningbo Fujia Industrial | Guangzhou Haige vs. Xizi Clean Energy | Guangzhou Haige vs. Gem Year Industrial Co | Guangzhou Haige vs. Runjian Communication Co |
| Hua Xia vs. Financial Street Holdings | Hua Xia vs. Guocheng Mining Co | Hua Xia vs. Xiamen Bank Co | Hua Xia vs. Kingclean Electric 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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