Correlation Between Guangzhou Haige and Jiangsu Seagull
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By analyzing existing cross correlation between Guangzhou Haige Communications and Jiangsu Seagull Cooling, you can compare the effects of market volatilities on Guangzhou Haige and Jiangsu Seagull 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 Jiangsu Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Jiangsu Seagull.
Diversification Opportunities for Guangzhou Haige and Jiangsu Seagull
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Jiangsu is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Jiangsu Seagull Cooling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Seagull Cooling 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 Jiangsu Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Seagull Cooling has no effect on the direction of Guangzhou Haige i.e., Guangzhou Haige and Jiangsu Seagull go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Jiangsu Seagull
Assuming the 90 days trading horizon Guangzhou Haige Communications is expected to generate 0.65 times more return on investment than Jiangsu Seagull. However, Guangzhou Haige Communications is 1.55 times less risky than Jiangsu Seagull. It trades about 0.02 of its potential returns per unit of risk. Jiangsu Seagull Cooling is currently generating about 0.0 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haige Communications vs. Jiangsu Seagull Cooling
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Jiangsu Seagull Cooling |
Guangzhou Haige and Jiangsu Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Jiangsu Seagull
The main advantage of trading using opposite Guangzhou Haige and Jiangsu Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige position performs unexpectedly, Jiangsu Seagull 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 Jiangsu Seagull will offset losses from the drop in Jiangsu Seagull'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 |
| Jiangsu Seagull vs. Guangzhou Haige Communications | Jiangsu Seagull vs. Inspur Software Co | Jiangsu Seagull vs. Peoples Insurance of | Jiangsu Seagull vs. Allwin Telecommunication 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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