Correlation Between Guangzhou Ruoyuchen and Hua Xia
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By analyzing existing cross correlation between Guangzhou Ruoyuchen Information and Hua Xia Bank, you can compare the effects of market volatilities on Guangzhou Ruoyuchen and Hua Xia 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 Ruoyuchen with a short position of Hua Xia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Ruoyuchen and Hua Xia.
Diversification Opportunities for Guangzhou Ruoyuchen and Hua Xia
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangzhou and Hua is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Ruoyuchen Informatio and Hua Xia Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hua Xia Bank and Guangzhou Ruoyuchen 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 Ruoyuchen Information are associated (or correlated) with Hua Xia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hua Xia Bank has no effect on the direction of Guangzhou Ruoyuchen i.e., Guangzhou Ruoyuchen and Hua Xia go up and down completely randomly.
Pair Corralation between Guangzhou Ruoyuchen and Hua Xia
Assuming the 90 days trading horizon Guangzhou Ruoyuchen Information is expected to generate 2.64 times more return on investment than Hua Xia. However, Guangzhou Ruoyuchen is 2.64 times more volatile than Hua Xia Bank. It trades about 0.06 of its potential returns per unit of risk. Hua Xia Bank is currently generating about 0.07 per unit of risk. If you would invest 1,357 in Guangzhou Ruoyuchen Information on November 22, 2024 and sell it today you would earn a total of 1,611 from holding Guangzhou Ruoyuchen Information or generate 118.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Guangzhou Ruoyuchen Informatio vs. Hua Xia Bank
Performance |
Timeline |
Guangzhou Ruoyuchen |
Hua Xia Bank |
Guangzhou Ruoyuchen and Hua Xia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangzhou Ruoyuchen and Hua Xia
The main advantage of trading using opposite Guangzhou Ruoyuchen and Hua Xia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Ruoyuchen position performs unexpectedly, Hua Xia 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 Hua Xia will offset losses from the drop in Hua Xia's long position.Guangzhou Ruoyuchen vs. Hangzhou Pinming Software | ||
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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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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