Correlation Between Guizhou Chanhen and Zhuhai Bojay
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By analyzing existing cross correlation between Guizhou Chanhen Chemical and Zhuhai Bojay Electronics, you can compare the effects of market volatilities on Guizhou Chanhen and Zhuhai Bojay 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 Guizhou Chanhen with a short position of Zhuhai Bojay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guizhou Chanhen and Zhuhai Bojay.
Diversification Opportunities for Guizhou Chanhen and Zhuhai Bojay
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guizhou and Zhuhai is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Guizhou Chanhen Chemical and Zhuhai Bojay Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhuhai Bojay Electronics and Guizhou Chanhen 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 Guizhou Chanhen Chemical are associated (or correlated) with Zhuhai Bojay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhuhai Bojay Electronics has no effect on the direction of Guizhou Chanhen i.e., Guizhou Chanhen and Zhuhai Bojay go up and down completely randomly.
Pair Corralation between Guizhou Chanhen and Zhuhai Bojay
Assuming the 90 days trading horizon Guizhou Chanhen Chemical is expected to generate 0.61 times more return on investment than Zhuhai Bojay. However, Guizhou Chanhen Chemical is 1.65 times less risky than Zhuhai Bojay. It trades about -0.11 of its potential returns per unit of risk. Zhuhai Bojay Electronics is currently generating about -0.23 per unit of risk. If you would invest 2,250 in Guizhou Chanhen Chemical on October 14, 2024 and sell it today you would lose (132.00) from holding Guizhou Chanhen Chemical or give up 5.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guizhou Chanhen Chemical vs. Zhuhai Bojay Electronics
Performance |
| Timeline |
| Guizhou Chanhen Chemical |
| Zhuhai Bojay Electronics |
Guizhou Chanhen and Zhuhai Bojay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guizhou Chanhen and Zhuhai Bojay
The main advantage of trading using opposite Guizhou Chanhen and Zhuhai Bojay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guizhou Chanhen position performs unexpectedly, Zhuhai Bojay 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 Zhuhai Bojay will offset losses from the drop in Zhuhai Bojay's long position.| Guizhou Chanhen vs. Xiamen Goldenhome Co | Guizhou Chanhen vs. China Sports Industry | Guizhou Chanhen vs. Shanghai Shuixing Home | Guizhou Chanhen vs. Oppein Home Group |
| Zhuhai Bojay vs. Guangzhou Jointas Chemical | Zhuhai Bojay vs. Guizhou Chanhen Chemical | Zhuhai Bojay vs. Fiberhome Telecommunication Technologies | Zhuhai Bojay vs. Runjian Communication 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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