Correlation Between Guangzhou Haige and Wuhan Yangtze
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou Haige Communications and Wuhan Yangtze Communication, you can compare the effects of market volatilities on Guangzhou Haige and Wuhan Yangtze 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 Wuhan Yangtze. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Wuhan Yangtze.
Diversification Opportunities for Guangzhou Haige and Wuhan Yangtze
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Wuhan is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Wuhan Yangtze Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Yangtze Commun 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 Wuhan Yangtze. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Yangtze Commun has no effect on the direction of Guangzhou Haige i.e., Guangzhou Haige and Wuhan Yangtze go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Wuhan Yangtze
Assuming the 90 days trading horizon Guangzhou Haige is expected to generate 5.5 times less return on investment than Wuhan Yangtze. But when comparing it to its historical volatility, Guangzhou Haige Communications is 1.76 times less risky than Wuhan Yangtze. It trades about 0.12 of its potential returns per unit of risk. Wuhan Yangtze Communication is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 1,866 in Wuhan Yangtze Communication on August 25, 2024 and sell it today you would earn a total of 1,001 from holding Wuhan Yangtze Communication or generate 53.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Guangzhou Haige Communications vs. Wuhan Yangtze Communication
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Wuhan Yangtze Commun |
Guangzhou Haige and Wuhan Yangtze Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Wuhan Yangtze
The main advantage of trading using opposite Guangzhou Haige and Wuhan Yangtze positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige position performs unexpectedly, Wuhan Yangtze 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 Wuhan Yangtze will offset losses from the drop in Wuhan Yangtze's long position.| Guangzhou Haige vs. Shanghai Rongtai Health | Guangzhou Haige vs. Shandong Sinoglory Health | Guangzhou Haige vs. Suzhou Mingzhi Technology | Guangzhou Haige vs. Yunnan Jianzhijia Health Chain |
| Wuhan Yangtze vs. Beijing Yanjing Brewery | Wuhan Yangtze vs. GKHT Medical Technology | Wuhan Yangtze vs. Touchstone International Medical | Wuhan Yangtze vs. Shandong Polymer Biochemicals |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |