Correlation Between Guangzhou Haige and Shanghai Jinfeng
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By analyzing existing cross correlation between Guangzhou Haige Communications and Shanghai Jinfeng Wine, you can compare the effects of market volatilities on Guangzhou Haige and Shanghai Jinfeng 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 Shanghai Jinfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Shanghai Jinfeng.
Diversification Opportunities for Guangzhou Haige and Shanghai Jinfeng
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Shanghai is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Shanghai Jinfeng Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jinfeng Wine 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 Shanghai Jinfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jinfeng Wine has no effect on the direction of Guangzhou Haige i.e., Guangzhou Haige and Shanghai Jinfeng go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Shanghai Jinfeng
Assuming the 90 days trading horizon Guangzhou Haige Communications is expected to under-perform the Shanghai Jinfeng. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Haige Communications is 1.11 times less risky than Shanghai Jinfeng. The stock trades about -0.03 of its potential returns per unit of risk. The Shanghai Jinfeng Wine is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 554.00 in Shanghai Jinfeng Wine on September 13, 2024 and sell it today you would earn a total of 107.00 from holding Shanghai Jinfeng Wine or generate 19.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Guangzhou Haige Communications vs. Shanghai Jinfeng Wine
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Shanghai Jinfeng Wine |
Guangzhou Haige and Shanghai Jinfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Shanghai Jinfeng
The main advantage of trading using opposite Guangzhou Haige and Shanghai Jinfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige position performs unexpectedly, Shanghai Jinfeng 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 Shanghai Jinfeng will offset losses from the drop in Shanghai Jinfeng'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 |
| Shanghai Jinfeng vs. China Life Insurance | Shanghai Jinfeng vs. Cinda Securities Co | Shanghai Jinfeng vs. Piotech Inc A | Shanghai Jinfeng vs. Dongxing Sec 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 Stocks Directory module to find actively traded stocks across global markets.
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