Correlation Between Guangzhou Jointas and Hubeiyichang Transportation
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By analyzing existing cross correlation between Guangzhou Jointas Chemical and Hubeiyichang Transportation Group, you can compare the effects of market volatilities on Guangzhou Jointas and Hubeiyichang Transportation 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 Jointas with a short position of Hubeiyichang Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jointas and Hubeiyichang Transportation.
Diversification Opportunities for Guangzhou Jointas and Hubeiyichang Transportation
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Hubeiyichang is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jointas Chemical and Hubeiyichang Transportation Gr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubeiyichang Transportation and Guangzhou Jointas 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 Jointas Chemical are associated (or correlated) with Hubeiyichang Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubeiyichang Transportation has no effect on the direction of Guangzhou Jointas i.e., Guangzhou Jointas and Hubeiyichang Transportation go up and down completely randomly.
Pair Corralation between Guangzhou Jointas and Hubeiyichang Transportation
Assuming the 90 days trading horizon Guangzhou Jointas Chemical is expected to under-perform the Hubeiyichang Transportation. In addition to that, Guangzhou Jointas is 1.46 times more volatile than Hubeiyichang Transportation Group. It trades about -0.05 of its total potential returns per unit of risk. Hubeiyichang Transportation Group is currently generating about -0.01 per unit of volatility. If you would invest 521.00 in Hubeiyichang Transportation Group on October 15, 2024 and sell it today you would lose (58.00) from holding Hubeiyichang Transportation Group or give up 11.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Jointas Chemical vs. Hubeiyichang Transportation Gr
Performance |
| Timeline |
| Guangzhou Jointas |
| Hubeiyichang Transportation |
Guangzhou Jointas and Hubeiyichang Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jointas and Hubeiyichang Transportation
The main advantage of trading using opposite Guangzhou Jointas and Hubeiyichang Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jointas position performs unexpectedly, Hubeiyichang Transportation 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 Hubeiyichang Transportation will offset losses from the drop in Hubeiyichang Transportation's long position.| Guangzhou Jointas vs. State Grid InformationCommunication | Guangzhou Jointas vs. Guangxi Wuzhou Communications | Guangzhou Jointas vs. Tieling Newcity Investment | Guangzhou Jointas vs. Dr Peng Telecom |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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