Correlation Between Guangzhou Boji and Hangzhou Coco
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By analyzing existing cross correlation between Guangzhou Boji Medical and Hangzhou Coco Healthcare, you can compare the effects of market volatilities on Guangzhou Boji and Hangzhou Coco 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 Hangzhou Coco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Boji and Hangzhou Coco.
Diversification Opportunities for Guangzhou Boji and Hangzhou Coco
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Hangzhou is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Boji Medical and Hangzhou Coco Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Coco Healthcare 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 Hangzhou Coco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Coco Healthcare has no effect on the direction of Guangzhou Boji i.e., Guangzhou Boji and Hangzhou Coco go up and down completely randomly.
Pair Corralation between Guangzhou Boji and Hangzhou Coco
Assuming the 90 days trading horizon Guangzhou Boji is expected to generate 1.39 times less return on investment than Hangzhou Coco. In addition to that, Guangzhou Boji is 1.14 times more volatile than Hangzhou Coco Healthcare. It trades about 0.06 of its total potential returns per unit of risk. Hangzhou Coco Healthcare is currently generating about 0.1 per unit of volatility. If you would invest 942.00 in Hangzhou Coco Healthcare on September 12, 2024 and sell it today you would earn a total of 53.00 from holding Hangzhou Coco Healthcare or generate 5.63% 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. Hangzhou Coco Healthcare
Performance |
| Timeline |
| Guangzhou Boji Medical |
| Hangzhou Coco Healthcare |
Guangzhou Boji and Hangzhou Coco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Boji and Hangzhou Coco
The main advantage of trading using opposite Guangzhou Boji and Hangzhou Coco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Boji position performs unexpectedly, Hangzhou Coco 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 Hangzhou Coco will offset losses from the drop in Hangzhou Coco's long position.| Guangzhou Boji vs. Cultural Investment Holdings | Guangzhou Boji vs. Gome Telecom Equipment | Guangzhou Boji vs. Holitech Technology Co | Guangzhou Boji vs. Zotye Automobile Co |
| Hangzhou Coco vs. China Petroleum Chemical | Hangzhou Coco vs. PetroChina Co Ltd | Hangzhou Coco vs. China State Construction | Hangzhou Coco vs. China Railway 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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