Correlation Between Guangzhou Haozhi and Success Electronics
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By analyzing existing cross correlation between Guangzhou Haozhi Industrial and Success Electronics, you can compare the effects of market volatilities on Guangzhou Haozhi and Success Electronics 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 Success Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haozhi and Success Electronics.
Diversification Opportunities for Guangzhou Haozhi and Success Electronics
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Success is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haozhi Industrial and Success Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Success Electronics 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 Success Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Success Electronics has no effect on the direction of Guangzhou Haozhi i.e., Guangzhou Haozhi and Success Electronics go up and down completely randomly.
Pair Corralation between Guangzhou Haozhi and Success Electronics
Assuming the 90 days trading horizon Guangzhou Haozhi Industrial is expected to under-perform the Success Electronics. In addition to that, Guangzhou Haozhi is 1.3 times more volatile than Success Electronics. It trades about -0.34 of its total potential returns per unit of risk. Success Electronics is currently generating about -0.23 per unit of volatility. If you would invest 422.00 in Success Electronics on October 12, 2024 and sell it today you would lose (61.00) from holding Success Electronics or give up 14.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haozhi Industrial vs. Success Electronics
Performance |
| Timeline |
| Guangzhou Haozhi Ind |
| Success Electronics |
Guangzhou Haozhi and Success Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haozhi and Success Electronics
The main advantage of trading using opposite Guangzhou Haozhi and Success Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haozhi position performs unexpectedly, Success Electronics 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 Success Electronics will offset losses from the drop in Success Electronics' long position.| Guangzhou Haozhi vs. Union Semiconductor Co | Guangzhou Haozhi vs. Yuanjie Semiconductor Technology | Guangzhou Haozhi vs. Southchip Semiconductor Technology | Guangzhou Haozhi vs. StarPower Semiconductor |
| Success Electronics vs. Guangzhou Haozhi Industrial | Success Electronics vs. Emdoor Information Co | Success Electronics vs. Ningbo Fujia Industrial | Success Electronics vs. Biwin Storage Technology |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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