Correlation Between Guangzhou Hongli and HanS Laser
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou Hongli Opto and HanS Laser Tech, you can compare the effects of market volatilities on Guangzhou Hongli and HanS Laser 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 Hongli with a short position of HanS Laser. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Hongli and HanS Laser.
Diversification Opportunities for Guangzhou Hongli and HanS Laser
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and HanS is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Hongli Opto and HanS Laser Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HanS Laser Tech and Guangzhou Hongli 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 Hongli Opto are associated (or correlated) with HanS Laser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HanS Laser Tech has no effect on the direction of Guangzhou Hongli i.e., Guangzhou Hongli and HanS Laser go up and down completely randomly.
Pair Corralation between Guangzhou Hongli and HanS Laser
Assuming the 90 days trading horizon Guangzhou Hongli Opto is expected to under-perform the HanS Laser. In addition to that, Guangzhou Hongli is 1.31 times more volatile than HanS Laser Tech. It trades about -0.32 of its total potential returns per unit of risk. HanS Laser Tech is currently generating about -0.02 per unit of volatility. If you would invest 2,577 in HanS Laser Tech on October 16, 2024 and sell it today you would lose (39.00) from holding HanS Laser Tech or give up 1.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Hongli Opto vs. HanS Laser Tech
Performance |
| Timeline |
| Guangzhou Hongli Opto |
| HanS Laser Tech |
Guangzhou Hongli and HanS Laser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Hongli and HanS Laser
The main advantage of trading using opposite Guangzhou Hongli and HanS Laser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Hongli position performs unexpectedly, HanS Laser 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 HanS Laser will offset losses from the drop in HanS Laser's long position.| Guangzhou Hongli vs. Montage Technology Co | Guangzhou Hongli vs. Bangyan Technology Co | Guangzhou Hongli vs. Shuhua Sports Co | Guangzhou Hongli vs. Caihong Display Devices |
| HanS Laser vs. Soochow Suzhou Industrial | HanS Laser vs. Hygon Information Technology | HanS Laser vs. Tibet Huayu Mining | HanS Laser vs. Chengtun Mining 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Commodity Directory Find actively traded commodities issued by global exchanges |