Correlation Between Guangdong Qunxing and Guangzhou Haige
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By analyzing existing cross correlation between Guangdong Qunxing Toys and Guangzhou Haige Communications, you can compare the effects of market volatilities on Guangdong Qunxing and Guangzhou Haige 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 Guangdong Qunxing with a short position of Guangzhou Haige. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Qunxing and Guangzhou Haige.
Diversification Opportunities for Guangdong Qunxing and Guangzhou Haige
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Guangdong and Guangzhou is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Qunxing Toys and Guangzhou Haige Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haige Comm and Guangdong Qunxing 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 Guangdong Qunxing Toys are associated (or correlated) with Guangzhou Haige. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haige Comm has no effect on the direction of Guangdong Qunxing i.e., Guangdong Qunxing and Guangzhou Haige go up and down completely randomly.
Pair Corralation between Guangdong Qunxing and Guangzhou Haige
Assuming the 90 days trading horizon Guangdong Qunxing Toys is expected to generate 1.22 times more return on investment than Guangzhou Haige. However, Guangdong Qunxing is 1.22 times more volatile than Guangzhou Haige Communications. It trades about 0.02 of its potential returns per unit of risk. Guangzhou Haige Communications is currently generating about 0.03 per unit of risk. If you would invest 624.00 in Guangdong Qunxing Toys on October 12, 2024 and sell it today you would earn a total of 80.00 from holding Guangdong Qunxing Toys or generate 12.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Guangdong Qunxing Toys vs. Guangzhou Haige Communications
Performance |
| Timeline |
| Guangdong Qunxing Toys |
| Guangzhou Haige Comm |
Guangdong Qunxing and Guangzhou Haige Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Qunxing and Guangzhou Haige
The main advantage of trading using opposite Guangdong Qunxing and Guangzhou Haige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Qunxing position performs unexpectedly, Guangzhou Haige 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 Haige will offset losses from the drop in Guangzhou Haige's long position.| Guangdong Qunxing vs. Western Metal Materials | Guangdong Qunxing vs. Liaoning Chengda Biotechnology | Guangdong Qunxing vs. Bloomage Biotechnology Corp | Guangdong Qunxing vs. Pengxin International Mining |
| Guangzhou Haige vs. Xinhua Winshare Publishing | Guangzhou Haige vs. Invengo Information Technology | Guangzhou Haige vs. Zhongfu Information | Guangzhou Haige vs. State Grid InformationCommunication |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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