Correlation Between Guangzhou Haozhi and Aba Chemicals
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By analyzing existing cross correlation between Guangzhou Haozhi Industrial and Aba Chemicals Corp, you can compare the effects of market volatilities on Guangzhou Haozhi and Aba Chemicals 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 Aba Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haozhi and Aba Chemicals.
Diversification Opportunities for Guangzhou Haozhi and Aba Chemicals
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangzhou and Aba is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haozhi Industrial and Aba Chemicals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aba Chemicals Corp 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 Aba Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aba Chemicals Corp has no effect on the direction of Guangzhou Haozhi i.e., Guangzhou Haozhi and Aba Chemicals go up and down completely randomly.
Pair Corralation between Guangzhou Haozhi and Aba Chemicals
Assuming the 90 days trading horizon Guangzhou Haozhi Industrial is expected to generate 1.79 times more return on investment than Aba Chemicals. However, Guangzhou Haozhi is 1.79 times more volatile than Aba Chemicals Corp. It trades about 0.1 of its potential returns per unit of risk. Aba Chemicals Corp is currently generating about -0.19 per unit of risk. If you would invest 2,071 in Guangzhou Haozhi Industrial on October 23, 2024 and sell it today you would earn a total of 156.00 from holding Guangzhou Haozhi Industrial or generate 7.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Guangzhou Haozhi Industrial vs. Aba Chemicals Corp
Performance |
| Timeline |
| Guangzhou Haozhi Ind |
| Aba Chemicals Corp |
Guangzhou Haozhi and Aba Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haozhi and Aba Chemicals
The main advantage of trading using opposite Guangzhou Haozhi and Aba Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haozhi position performs unexpectedly, Aba Chemicals 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 Aba Chemicals will offset losses from the drop in Aba Chemicals' long position.| Guangzhou Haozhi vs. PetroChina Co Ltd | Guangzhou Haozhi vs. Industrial and Commercial | Guangzhou Haozhi vs. China Petroleum Chemical | Guangzhou Haozhi vs. China Construction Bank |
| Aba Chemicals vs. Guangzhou Haozhi Industrial | Aba Chemicals vs. Youyou Foods Co | Aba Chemicals vs. Chengtun Mining Group | Aba Chemicals vs. Xiamen Jihong Package |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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