Correlation Between Sichuan Yahua and Guangzhou Haozhi
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By analyzing existing cross correlation between Sichuan Yahua Industrial and Guangzhou Haozhi Industrial, you can compare the effects of market volatilities on Sichuan Yahua and Guangzhou Haozhi 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 Sichuan Yahua with a short position of Guangzhou Haozhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Yahua and Guangzhou Haozhi.
Diversification Opportunities for Sichuan Yahua and Guangzhou Haozhi
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sichuan and Guangzhou is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Yahua Industrial and Guangzhou Haozhi Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haozhi Ind and Sichuan Yahua 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 Sichuan Yahua Industrial are associated (or correlated) with Guangzhou Haozhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haozhi Ind has no effect on the direction of Sichuan Yahua i.e., Sichuan Yahua and Guangzhou Haozhi go up and down completely randomly.
Pair Corralation between Sichuan Yahua and Guangzhou Haozhi
Assuming the 90 days trading horizon Sichuan Yahua Industrial is expected to under-perform the Guangzhou Haozhi. But the stock apears to be less risky and, when comparing its historical volatility, Sichuan Yahua Industrial is 1.78 times less risky than Guangzhou Haozhi. The stock trades about -0.04 of its potential returns per unit of risk. The Guangzhou Haozhi Industrial is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 906.00 in Guangzhou Haozhi Industrial on October 16, 2024 and sell it today you would earn a total of 1,005 from holding Guangzhou Haozhi Industrial or generate 110.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Yahua Industrial vs. Guangzhou Haozhi Industrial
Performance |
| Timeline |
| Sichuan Yahua Industrial |
| Guangzhou Haozhi Ind |
Sichuan Yahua and Guangzhou Haozhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Yahua and Guangzhou Haozhi
The main advantage of trading using opposite Sichuan Yahua and Guangzhou Haozhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Yahua position performs unexpectedly, Guangzhou Haozhi 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 Guangzhou Haozhi will offset losses from the drop in Guangzhou Haozhi's long position.| Sichuan Yahua vs. Shenzhen Bioeasy Biotechnology | Sichuan Yahua vs. Heilongjiang Publishing Media | Sichuan Yahua vs. Southern PublishingMedia Co | Sichuan Yahua vs. Changchun BCHT Biotechnology |
| Guangzhou Haozhi vs. Shanghai Ziyan Foods | Guangzhou Haozhi vs. Great Sun Foods Co | Guangzhou Haozhi vs. New Hope Dairy | Guangzhou Haozhi vs. Qingdao Foods 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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