Correlation Between Guangzhou Haige and Zhejiang Publishing
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By analyzing existing cross correlation between Guangzhou Haige Communications and Zhejiang Publishing Media, you can compare the effects of market volatilities on Guangzhou Haige and Zhejiang Publishing 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 Zhejiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Zhejiang Publishing.
Diversification Opportunities for Guangzhou Haige and Zhejiang Publishing
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Guangzhou and Zhejiang is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Zhejiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Publishing Media 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 Zhejiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Publishing Media has no effect on the direction of Guangzhou Haige i.e., Guangzhou Haige and Zhejiang Publishing go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Zhejiang Publishing
Assuming the 90 days trading horizon Guangzhou Haige Communications is expected to generate 0.94 times more return on investment than Zhejiang Publishing. However, Guangzhou Haige Communications is 1.07 times less risky than Zhejiang Publishing. It trades about 0.02 of its potential returns per unit of risk. Zhejiang Publishing Media is currently generating about 0.01 per unit of risk. If you would invest 1,169 in Guangzhou Haige Communications on August 25, 2024 and sell it today you would earn a total of 18.00 from holding Guangzhou Haige Communications or generate 1.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haige Communications vs. Zhejiang Publishing Media
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Zhejiang Publishing Media |
Guangzhou Haige and Zhejiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Zhejiang Publishing
The main advantage of trading using opposite Guangzhou Haige and Zhejiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige position performs unexpectedly, Zhejiang Publishing 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 Zhejiang Publishing will offset losses from the drop in Zhejiang Publishing'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 |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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