Correlation Between Guangzhou Jointas and Huaxia Eye
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By analyzing existing cross correlation between Guangzhou Jointas Chemical and Huaxia Eye Hospital, you can compare the effects of market volatilities on Guangzhou Jointas and Huaxia Eye 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 Huaxia Eye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jointas and Huaxia Eye.
Diversification Opportunities for Guangzhou Jointas and Huaxia Eye
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Huaxia is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jointas Chemical and Huaxia Eye Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaxia Eye Hospital 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 Huaxia Eye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaxia Eye Hospital has no effect on the direction of Guangzhou Jointas i.e., Guangzhou Jointas and Huaxia Eye go up and down completely randomly.
Pair Corralation between Guangzhou Jointas and Huaxia Eye
Assuming the 90 days trading horizon Guangzhou Jointas Chemical is expected to generate 1.77 times more return on investment than Huaxia Eye. However, Guangzhou Jointas is 1.77 times more volatile than Huaxia Eye Hospital. It trades about -0.06 of its potential returns per unit of risk. Huaxia Eye Hospital is currently generating about -0.11 per unit of risk. If you would invest 548.00 in Guangzhou Jointas Chemical on September 28, 2024 and sell it today you would lose (33.00) from holding Guangzhou Jointas Chemical or give up 6.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Jointas Chemical vs. Huaxia Eye Hospital
Performance |
| Timeline |
| Guangzhou Jointas |
| Huaxia Eye Hospital |
Guangzhou Jointas and Huaxia Eye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jointas and Huaxia Eye
The main advantage of trading using opposite Guangzhou Jointas and Huaxia Eye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jointas position performs unexpectedly, Huaxia Eye 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 Huaxia Eye will offset losses from the drop in Huaxia Eye's long position.| Guangzhou Jointas vs. Zijin Mining Group | Guangzhou Jointas vs. Baoshan Iron Steel | Guangzhou Jointas vs. Shandong Gold Mining | Guangzhou Jointas vs. Rongsheng Petrochemical Co |
| Huaxia Eye vs. Liuzhou Chemical Industry | Huaxia Eye vs. North Huajin Chemical | Huaxia Eye vs. Liaoning Dingjide Petrochemical | Huaxia Eye vs. Guangzhou Jointas Chemical |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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