Correlation Between BlueFocus Communication and Guangzhou Haige
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By analyzing existing cross correlation between BlueFocus Communication Group and Guangzhou Haige Communications, you can compare the effects of market volatilities on BlueFocus Communication 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 BlueFocus Communication with a short position of Guangzhou Haige. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlueFocus Communication and Guangzhou Haige.
Diversification Opportunities for BlueFocus Communication and Guangzhou Haige
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between BlueFocus and Guangzhou is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding BlueFocus Communication Group 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 BlueFocus Communication 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 BlueFocus Communication Group 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 BlueFocus Communication i.e., BlueFocus Communication and Guangzhou Haige go up and down completely randomly.
Pair Corralation between BlueFocus Communication and Guangzhou Haige
Assuming the 90 days trading horizon BlueFocus Communication Group is expected to generate 1.36 times more return on investment than Guangzhou Haige. However, BlueFocus Communication is 1.36 times more volatile than Guangzhou Haige Communications. It trades about 0.04 of its potential returns per unit of risk. Guangzhou Haige Communications is currently generating about 0.04 per unit of risk. If you would invest 904.00 in BlueFocus Communication Group on September 12, 2024 and sell it today you would earn a total of 256.00 from holding BlueFocus Communication Group or generate 28.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BlueFocus Communication Group vs. Guangzhou Haige Communications
Performance |
| Timeline |
| BlueFocus Communication |
| Guangzhou Haige Comm |
BlueFocus Communication and Guangzhou Haige Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BlueFocus Communication and Guangzhou Haige
The main advantage of trading using opposite BlueFocus Communication and Guangzhou Haige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlueFocus Communication 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.The idea behind BlueFocus Communication Group and Guangzhou Haige Communications pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Guangzhou Haige vs. Gansu Jiu Steel | Guangzhou Haige vs. Shandong Mining Machinery | Guangzhou Haige vs. Aba Chemicals Corp | Guangzhou Haige vs. BlueFocus Communication Group |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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