Correlation Between Guangzhou Haozhi and Jinsanjiang Silicon
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By analyzing existing cross correlation between Guangzhou Haozhi Industrial and Jinsanjiang Silicon Material, you can compare the effects of market volatilities on Guangzhou Haozhi and Jinsanjiang Silicon 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 Jinsanjiang Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haozhi and Jinsanjiang Silicon.
Diversification Opportunities for Guangzhou Haozhi and Jinsanjiang Silicon
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Guangzhou and Jinsanjiang is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haozhi Industrial and Jinsanjiang Silicon Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinsanjiang Silicon 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 Jinsanjiang Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinsanjiang Silicon has no effect on the direction of Guangzhou Haozhi i.e., Guangzhou Haozhi and Jinsanjiang Silicon go up and down completely randomly.
Pair Corralation between Guangzhou Haozhi and Jinsanjiang Silicon
Assuming the 90 days trading horizon Guangzhou Haozhi Industrial is expected to generate 1.3 times more return on investment than Jinsanjiang Silicon. However, Guangzhou Haozhi is 1.3 times more volatile than Jinsanjiang Silicon Material. It trades about 0.06 of its potential returns per unit of risk. Jinsanjiang Silicon Material is currently generating about 0.0 per unit of risk. If you would invest 928.00 in Guangzhou Haozhi Industrial on November 7, 2024 and sell it today you would earn a total of 1,261 from holding Guangzhou Haozhi Industrial or generate 135.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haozhi Industrial vs. Jinsanjiang Silicon Material
Performance |
| Timeline |
| Guangzhou Haozhi Ind |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| Jinsanjiang Silicon |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Guangzhou Haozhi and Jinsanjiang Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haozhi and Jinsanjiang Silicon
The main advantage of trading using opposite Guangzhou Haozhi and Jinsanjiang Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haozhi position performs unexpectedly, Jinsanjiang Silicon 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 Jinsanjiang Silicon will offset losses from the drop in Jinsanjiang Silicon's long position.The idea behind Guangzhou Haozhi Industrial and Jinsanjiang Silicon Material pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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