Correlation Between Guangzhou Haige and Zhuzhou Kibing
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By analyzing existing cross correlation between Guangzhou Haige Communications and Zhuzhou Kibing Group, you can compare the effects of market volatilities on Guangzhou Haige and Zhuzhou Kibing 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 Zhuzhou Kibing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Zhuzhou Kibing.
Diversification Opportunities for Guangzhou Haige and Zhuzhou Kibing
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Zhuzhou is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Zhuzhou Kibing Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhuzhou Kibing Group 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 Zhuzhou Kibing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhuzhou Kibing Group has no effect on the direction of Guangzhou Haige i.e., Guangzhou Haige and Zhuzhou Kibing go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Zhuzhou Kibing
Assuming the 90 days trading horizon Guangzhou Haige Communications is expected to generate 1.06 times more return on investment than Zhuzhou Kibing. However, Guangzhou Haige is 1.06 times more volatile than Zhuzhou Kibing Group. It trades about 0.06 of its potential returns per unit of risk. Zhuzhou Kibing Group is currently generating about -0.05 per unit of risk. If you would invest 1,071 in Guangzhou Haige Communications on September 1, 2024 and sell it today you would earn a total of 209.00 from holding Guangzhou Haige Communications or generate 19.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.19% |
| Values | Daily Returns |
Guangzhou Haige Communications vs. Zhuzhou Kibing Group
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Zhuzhou Kibing Group |
Guangzhou Haige and Zhuzhou Kibing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Zhuzhou Kibing
The main advantage of trading using opposite Guangzhou Haige and Zhuzhou Kibing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige position performs unexpectedly, Zhuzhou Kibing 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 Zhuzhou Kibing will offset losses from the drop in Zhuzhou Kibing's long position.| Guangzhou Haige vs. Industrial and Commercial | Guangzhou Haige vs. Kweichow Moutai Co | Guangzhou Haige vs. Agricultural Bank of | Guangzhou Haige vs. China Mobile Limited |
| Zhuzhou Kibing vs. Beijing Sanyuan Foods | Zhuzhou Kibing vs. Youyou Foods Co | Zhuzhou Kibing vs. Yili Chuanning Biotechnology | Zhuzhou Kibing vs. Jiahe Foods Industry |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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