Correlation Between Guangzhou Haozhi and Changchun High
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By analyzing existing cross correlation between Guangzhou Haozhi Industrial and Changchun High New, you can compare the effects of market volatilities on Guangzhou Haozhi and Changchun High 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 Changchun High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haozhi and Changchun High.
Diversification Opportunities for Guangzhou Haozhi and Changchun High
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Changchun is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haozhi Industrial and Changchun High New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun High New 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 Changchun High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun High New has no effect on the direction of Guangzhou Haozhi i.e., Guangzhou Haozhi and Changchun High go up and down completely randomly.
Pair Corralation between Guangzhou Haozhi and Changchun High
Assuming the 90 days trading horizon Guangzhou Haozhi Industrial is expected to generate 1.58 times more return on investment than Changchun High. However, Guangzhou Haozhi is 1.58 times more volatile than Changchun High New. It trades about 0.04 of its potential returns per unit of risk. Changchun High New is currently generating about -0.01 per unit of risk. If you would invest 1,528 in Guangzhou Haozhi Industrial on August 27, 2024 and sell it today you would earn a total of 248.00 from holding Guangzhou Haozhi Industrial or generate 16.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haozhi Industrial vs. Changchun High New
Performance |
| Timeline |
| Guangzhou Haozhi Ind |
| Changchun High New |
Guangzhou Haozhi and Changchun High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haozhi and Changchun High
The main advantage of trading using opposite Guangzhou Haozhi and Changchun High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haozhi position performs unexpectedly, Changchun High 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 Changchun High will offset losses from the drop in Changchun High's long position.| Guangzhou Haozhi vs. Biwin Storage Technology | Guangzhou Haozhi vs. PetroChina Co Ltd | Guangzhou Haozhi vs. Industrial and Commercial | Guangzhou Haozhi vs. China Construction Bank |
| Changchun High vs. Lonkey Industrial Co | Changchun High vs. Guangzhou Haozhi Industrial | Changchun High vs. Western Metal Materials | Changchun High vs. Gansu Yasheng 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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