Correlation Between Guangzhou Haozhi and China Union
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By analyzing existing cross correlation between Guangzhou Haozhi Industrial and China Union Holdings, you can compare the effects of market volatilities on Guangzhou Haozhi and China Union 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 Haozhi with a short position of China Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haozhi and China Union.
Diversification Opportunities for Guangzhou Haozhi and China Union
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Guangzhou and China is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haozhi Industrial and China Union Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Union Holdings and Guangzhou Haozhi 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 Haozhi Industrial are associated (or correlated) with China Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Union Holdings has no effect on the direction of Guangzhou Haozhi i.e., Guangzhou Haozhi and China Union go up and down completely randomly.
Pair Corralation between Guangzhou Haozhi and China Union
Assuming the 90 days trading horizon Guangzhou Haozhi Industrial is expected to generate 2.09 times more return on investment than China Union. However, Guangzhou Haozhi is 2.09 times more volatile than China Union Holdings. It trades about -0.25 of its potential returns per unit of risk. China Union Holdings is currently generating about -0.71 per unit of risk. If you would invest 2,298 in Guangzhou Haozhi Industrial on October 14, 2024 and sell it today you would lose (441.00) from holding Guangzhou Haozhi Industrial or give up 19.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haozhi Industrial vs. China Union Holdings
Performance |
| Timeline |
| Guangzhou Haozhi Ind |
| China Union Holdings |
Guangzhou Haozhi and China Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haozhi and China Union
The main advantage of trading using opposite Guangzhou Haozhi and China Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haozhi position performs unexpectedly, China Union 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 China Union will offset losses from the drop in China Union's long position.| Guangzhou Haozhi vs. Beijing Yanjing Brewery | Guangzhou Haozhi vs. Anhui Transport Consulting | Guangzhou Haozhi vs. Chengdu Xinzhu RoadBridge | Guangzhou Haozhi vs. Shaanxi Construction Machinery |
| China Union vs. Pengxin International Mining | China Union vs. Bosera CMSK Industrial | China Union vs. Hangzhou Gisway Information | China Union vs. Guangzhou Haozhi Industrial |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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