Correlation Between Guangzhou Hangxin and Shenzhen MYS
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By analyzing existing cross correlation between Guangzhou Hangxin Aviation and Shenzhen MYS Environmental, you can compare the effects of market volatilities on Guangzhou Hangxin and Shenzhen MYS 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 Hangxin with a short position of Shenzhen MYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Hangxin and Shenzhen MYS.
Diversification Opportunities for Guangzhou Hangxin and Shenzhen MYS
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangzhou and Shenzhen is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Hangxin Aviation and Shenzhen MYS Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen MYS Environ and Guangzhou Hangxin 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 Hangxin Aviation are associated (or correlated) with Shenzhen MYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen MYS Environ has no effect on the direction of Guangzhou Hangxin i.e., Guangzhou Hangxin and Shenzhen MYS go up and down completely randomly.
Pair Corralation between Guangzhou Hangxin and Shenzhen MYS
Assuming the 90 days trading horizon Guangzhou Hangxin is expected to generate 1.24 times less return on investment than Shenzhen MYS. In addition to that, Guangzhou Hangxin is 1.6 times more volatile than Shenzhen MYS Environmental. It trades about 0.08 of its total potential returns per unit of risk. Shenzhen MYS Environmental is currently generating about 0.16 per unit of volatility. If you would invest 192.00 in Shenzhen MYS Environmental on October 22, 2024 and sell it today you would earn a total of 146.00 from holding Shenzhen MYS Environmental or generate 76.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Hangxin Aviation vs. Shenzhen MYS Environmental
Performance |
| Timeline |
| Guangzhou Hangxin |
| Shenzhen MYS Environ |
Guangzhou Hangxin and Shenzhen MYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Hangxin and Shenzhen MYS
The main advantage of trading using opposite Guangzhou Hangxin and Shenzhen MYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Hangxin position performs unexpectedly, Shenzhen MYS 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 Shenzhen MYS will offset losses from the drop in Shenzhen MYS's long position.| Guangzhou Hangxin vs. Shenzhen MYS Environmental | Guangzhou Hangxin vs. AVIC Fund Management | Guangzhou Hangxin vs. Haoxiangni Jujube Co | Guangzhou Hangxin vs. Shenzhen Bingchuan Network |
| Shenzhen MYS vs. Shandong Longquan Pipeline | Shenzhen MYS vs. Huizhou Speed Wireless | Shenzhen MYS vs. Jilin Chemical Fibre | Shenzhen MYS vs. Lander Sports Development |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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