Correlation Between Guangzhou Haige and Yantai North
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By analyzing existing cross correlation between Guangzhou Haige Communications and Yantai North Andre, you can compare the effects of market volatilities on Guangzhou Haige and Yantai North 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 Yantai North. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Yantai North.
Diversification Opportunities for Guangzhou Haige and Yantai North
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Yantai is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Yantai North Andre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yantai North Andre 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 Yantai North. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yantai North Andre has no effect on the direction of Guangzhou Haige i.e., Guangzhou Haige and Yantai North go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Yantai North
Assuming the 90 days trading horizon Guangzhou Haige is expected to generate 1.37 times less return on investment than Yantai North. In addition to that, Guangzhou Haige is 1.29 times more volatile than Yantai North Andre. It trades about 0.17 of its total potential returns per unit of risk. Yantai North Andre is currently generating about 0.3 per unit of volatility. If you would invest 2,417 in Yantai North Andre on September 1, 2024 and sell it today you would earn a total of 475.00 from holding Yantai North Andre or generate 19.65% 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. Yantai North Andre
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Yantai North Andre |
Guangzhou Haige and Yantai North Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Yantai North
The main advantage of trading using opposite Guangzhou Haige and Yantai North positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige position performs unexpectedly, Yantai North 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 Yantai North will offset losses from the drop in Yantai North'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 |
| Yantai North vs. Guangzhou Haige Communications | Yantai North vs. Haima Automobile Group | Yantai North vs. Tongyu Communication | Yantai North vs. Xinjiang Communications Construction |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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