Correlation Between Guangzhou Boji and Guangzhou Haige
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By analyzing existing cross correlation between Guangzhou Boji Medical and Guangzhou Haige Communications, you can compare the effects of market volatilities on Guangzhou Boji 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 Guangzhou Boji with a short position of Guangzhou Haige. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Boji and Guangzhou Haige.
Diversification Opportunities for Guangzhou Boji and Guangzhou Haige
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Guangzhou is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Boji Medical 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 Guangzhou Boji 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 Boji Medical 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 Guangzhou Boji i.e., Guangzhou Boji and Guangzhou Haige go up and down completely randomly.
Pair Corralation between Guangzhou Boji and Guangzhou Haige
Assuming the 90 days trading horizon Guangzhou Boji Medical is expected to under-perform the Guangzhou Haige. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Boji Medical is 1.35 times less risky than Guangzhou Haige. The stock trades about -0.02 of its potential returns per unit of risk. The Guangzhou Haige Communications is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,131 in Guangzhou Haige Communications on September 1, 2024 and sell it today you would earn a total of 149.00 from holding Guangzhou Haige Communications or generate 13.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Boji Medical vs. Guangzhou Haige Communications
Performance |
| Timeline |
| Guangzhou Boji Medical |
| Guangzhou Haige Comm |
Guangzhou Boji and Guangzhou Haige Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Boji and Guangzhou Haige
The main advantage of trading using opposite Guangzhou Boji and Guangzhou Haige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Boji 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.| Guangzhou Boji vs. Changchun Engley Automobile | Guangzhou Boji vs. Anhui Jianghuai Automobile | Guangzhou Boji vs. Songz Automobile Air | Guangzhou Boji vs. Shenzhen Kexin Communication |
| Guangzhou Haige vs. Industrial and Commercial | Guangzhou Haige vs. Kweichow Moutai Co | Guangzhou Haige vs. Agricultural Bank of | Guangzhou Haige vs. China Mobile Limited |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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