Correlation Between Guangdong Silvere and Hainan HNA
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By analyzing existing cross correlation between Guangdong Silvere Sci and Hainan HNA Infrastructure, you can compare the effects of market volatilities on Guangdong Silvere and Hainan HNA 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 Guangdong Silvere with a short position of Hainan HNA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Silvere and Hainan HNA.
Diversification Opportunities for Guangdong Silvere and Hainan HNA
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and Hainan is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Silvere Sci and Hainan HNA Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan HNA Infrastructure and Guangdong Silvere 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 Guangdong Silvere Sci are associated (or correlated) with Hainan HNA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan HNA Infrastructure has no effect on the direction of Guangdong Silvere i.e., Guangdong Silvere and Hainan HNA go up and down completely randomly.
Pair Corralation between Guangdong Silvere and Hainan HNA
Assuming the 90 days trading horizon Guangdong Silvere Sci is expected to generate 1.42 times more return on investment than Hainan HNA. However, Guangdong Silvere is 1.42 times more volatile than Hainan HNA Infrastructure. It trades about 0.1 of its potential returns per unit of risk. Hainan HNA Infrastructure is currently generating about 0.04 per unit of risk. If you would invest 447.00 in Guangdong Silvere Sci on October 26, 2024 and sell it today you would earn a total of 193.00 from holding Guangdong Silvere Sci or generate 43.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Silvere Sci vs. Hainan HNA Infrastructure
Performance |
| Timeline |
| Guangdong Silvere Sci |
| Hainan HNA Infrastructure |
Guangdong Silvere and Hainan HNA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Silvere and Hainan HNA
The main advantage of trading using opposite Guangdong Silvere and Hainan HNA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Silvere position performs unexpectedly, Hainan HNA 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 Hainan HNA will offset losses from the drop in Hainan HNA's long position.| Guangdong Silvere vs. Agricultural Bank of | Guangdong Silvere vs. China Everbright Bank | Guangdong Silvere vs. GRG Banking Equipment | Guangdong Silvere vs. Shanghai Yanpu Metal |
| Hainan HNA vs. Guangdong Silvere Sci | Hainan HNA vs. China Everbright Bank | Hainan HNA vs. Agricultural Bank of | Hainan HNA vs. Ping An Insurance |
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.
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