Correlation Between Guangzhou Haozhi and Nanjing Putian
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By analyzing existing cross correlation between Guangzhou Haozhi Industrial and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Guangzhou Haozhi and Nanjing Putian 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 Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haozhi and Nanjing Putian.
Diversification Opportunities for Guangzhou Haozhi and Nanjing Putian
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guangzhou and Nanjing is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haozhi Industrial and Nanjing Putian Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Putian Telec 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 Nanjing Putian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Putian Telec has no effect on the direction of Guangzhou Haozhi i.e., Guangzhou Haozhi and Nanjing Putian go up and down completely randomly.
Pair Corralation between Guangzhou Haozhi and Nanjing Putian
Assuming the 90 days trading horizon Guangzhou Haozhi Industrial is expected to generate 2.25 times more return on investment than Nanjing Putian. However, Guangzhou Haozhi is 2.25 times more volatile than Nanjing Putian Telecommunications. It trades about -0.01 of its potential returns per unit of risk. Nanjing Putian Telecommunications is currently generating about -0.3 per unit of risk. If you would invest 2,599 in Guangzhou Haozhi Industrial on December 31, 2024 and sell it today you would lose (49.00) from holding Guangzhou Haozhi Industrial or give up 1.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Guangzhou Haozhi Industrial vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Guangzhou Haozhi Ind |
| Nanjing Putian Telec |
Guangzhou Haozhi and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haozhi and Nanjing Putian
The main advantage of trading using opposite Guangzhou Haozhi and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haozhi position performs unexpectedly, Nanjing Putian 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 Nanjing Putian will offset losses from the drop in Nanjing Putian's long position.| Guangzhou Haozhi vs. Peoples Insurance of | Guangzhou Haozhi vs. HeNan Splendor Science | Guangzhou Haozhi vs. Financial Street Holdings | Guangzhou Haozhi vs. Xiamen Bank Co |
| Nanjing Putian vs. Anhui Transport Consulting | Nanjing Putian vs. Northern United Publishing | Nanjing Putian vs. Time Publishing and | Nanjing Putian vs. Shaanxi Broadcast TV |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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