Correlation Between Fujian Longzhou and Guangzhou Haige
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By analyzing existing cross correlation between Fujian Longzhou Transportation and Guangzhou Haige Communications, you can compare the effects of market volatilities on Fujian Longzhou 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 Fujian Longzhou with a short position of Guangzhou Haige. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Longzhou and Guangzhou Haige.
Diversification Opportunities for Fujian Longzhou and Guangzhou Haige
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fujian and Guangzhou is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Longzhou Transportation 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 Fujian Longzhou 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 Fujian Longzhou Transportation 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 Fujian Longzhou i.e., Fujian Longzhou and Guangzhou Haige go up and down completely randomly.
Pair Corralation between Fujian Longzhou and Guangzhou Haige
Assuming the 90 days trading horizon Fujian Longzhou is expected to generate 1.63 times less return on investment than Guangzhou Haige. In addition to that, Fujian Longzhou is 1.46 times more volatile than Guangzhou Haige Communications. It trades about 0.02 of its total potential returns per unit of risk. Guangzhou Haige Communications is currently generating about 0.04 per unit of volatility. If you would invest 826.00 in Guangzhou Haige Communications on August 29, 2024 and sell it today you would earn a total of 355.00 from holding Guangzhou Haige Communications or generate 42.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Longzhou Transportation vs. Guangzhou Haige Communications
Performance |
| Timeline |
| Fujian Longzhou Tran |
| Guangzhou Haige Comm |
Fujian Longzhou and Guangzhou Haige Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Longzhou and Guangzhou Haige
The main advantage of trading using opposite Fujian Longzhou and Guangzhou Haige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Longzhou 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.| Fujian Longzhou vs. Agricultural Bank of | Fujian Longzhou vs. Industrial and Commercial | Fujian Longzhou vs. Bank of China | Fujian Longzhou vs. China Construction Bank |
| Guangzhou Haige vs. Will Semiconductor Co | Guangzhou Haige vs. RoadMain T Co | Guangzhou Haige vs. Semiconductor Manufacturing Electronics | Guangzhou Haige vs. Guizhou BroadcastingTV Info |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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