Correlation Between Guangzhou Haige and Hubei Jumpcan
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By analyzing existing cross correlation between Guangzhou Haige Communications and Hubei Jumpcan Pharmaceutical, you can compare the effects of market volatilities on Guangzhou Haige and Hubei Jumpcan 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 Hubei Jumpcan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Hubei Jumpcan.
Diversification Opportunities for Guangzhou Haige and Hubei Jumpcan
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Hubei is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Hubei Jumpcan Pharmaceutical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Jumpcan Pharma 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 Hubei Jumpcan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Jumpcan Pharma has no effect on the direction of Guangzhou Haige i.e., Guangzhou Haige and Hubei Jumpcan go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Hubei Jumpcan
Assuming the 90 days trading horizon Guangzhou Haige Communications is expected to under-perform the Hubei Jumpcan. In addition to that, Guangzhou Haige is 1.25 times more volatile than Hubei Jumpcan Pharmaceutical. It trades about -0.2 of its total potential returns per unit of risk. Hubei Jumpcan Pharmaceutical is currently generating about -0.24 per unit of volatility. If you would invest 3,009 in Hubei Jumpcan Pharmaceutical on October 25, 2024 and sell it today you would lose (274.00) from holding Hubei Jumpcan Pharmaceutical or give up 9.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Guangzhou Haige Communications vs. Hubei Jumpcan Pharmaceutical
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Hubei Jumpcan Pharma |
Guangzhou Haige and Hubei Jumpcan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Hubei Jumpcan
The main advantage of trading using opposite Guangzhou Haige and Hubei Jumpcan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige position performs unexpectedly, Hubei Jumpcan 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 Hubei Jumpcan will offset losses from the drop in Hubei Jumpcan's long position.| Guangzhou Haige vs. Anhui Jianghuai Automobile | Guangzhou Haige vs. CIMC Vehicles Co | Guangzhou Haige vs. Road Environment Technology | Guangzhou Haige vs. Zhengping RoadBridge Constr |
| Hubei Jumpcan vs. Jilin OLED Material | Hubei Jumpcan vs. Konfoong Materials International | Hubei Jumpcan vs. Cangzhou Mingzhu Plastic | Hubei Jumpcan vs. Anhui Guofeng Plastic |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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