Correlation Between Guangzhou Haozhi and Qingdao Choho
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By analyzing existing cross correlation between Guangzhou Haozhi Industrial and Qingdao Choho Industrial, you can compare the effects of market volatilities on Guangzhou Haozhi and Qingdao Choho 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 Qingdao Choho. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haozhi and Qingdao Choho.
Diversification Opportunities for Guangzhou Haozhi and Qingdao Choho
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Qingdao is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haozhi Industrial and Qingdao Choho Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Choho Industrial 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 Qingdao Choho. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Choho Industrial has no effect on the direction of Guangzhou Haozhi i.e., Guangzhou Haozhi and Qingdao Choho go up and down completely randomly.
Pair Corralation between Guangzhou Haozhi and Qingdao Choho
Assuming the 90 days trading horizon Guangzhou Haozhi Industrial is expected to under-perform the Qingdao Choho. In addition to that, Guangzhou Haozhi is 1.91 times more volatile than Qingdao Choho Industrial. It trades about -0.25 of its total potential returns per unit of risk. Qingdao Choho Industrial is currently generating about -0.29 per unit of volatility. If you would invest 2,897 in Qingdao Choho Industrial on October 14, 2024 and sell it today you would lose (335.00) from holding Qingdao Choho Industrial or give up 11.56% 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. Qingdao Choho Industrial
Performance |
| Timeline |
| Guangzhou Haozhi Ind |
| Qingdao Choho Industrial |
Guangzhou Haozhi and Qingdao Choho Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haozhi and Qingdao Choho
The main advantage of trading using opposite Guangzhou Haozhi and Qingdao Choho positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haozhi position performs unexpectedly, Qingdao Choho 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 Qingdao Choho will offset losses from the drop in Qingdao Choho's long position.| Guangzhou Haozhi vs. Fiberhome Telecommunication Technologies | Guangzhou Haozhi vs. Miracll Chemicals Co | Guangzhou Haozhi vs. Do Fluoride Chemicals Co | Guangzhou Haozhi vs. Aba Chemicals Corp |
| Qingdao Choho vs. Bank of Communications | Qingdao Choho vs. TianJin 712 Communication | Qingdao Choho vs. Beijing Mainstreets Investment | Qingdao Choho vs. Kunwu Jiuding Investment |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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