Correlation Between Guangzhou Haozhi and Hangzhou Gisway
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By analyzing existing cross correlation between Guangzhou Haozhi Industrial and Hangzhou Gisway Information, you can compare the effects of market volatilities on Guangzhou Haozhi and Hangzhou Gisway 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 Hangzhou Gisway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haozhi and Hangzhou Gisway.
Diversification Opportunities for Guangzhou Haozhi and Hangzhou Gisway
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Hangzhou is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haozhi Industrial and Hangzhou Gisway Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Gisway Info 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 Hangzhou Gisway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Gisway Info has no effect on the direction of Guangzhou Haozhi i.e., Guangzhou Haozhi and Hangzhou Gisway go up and down completely randomly.
Pair Corralation between Guangzhou Haozhi and Hangzhou Gisway
Assuming the 90 days trading horizon Guangzhou Haozhi Industrial is expected to under-perform the Hangzhou Gisway. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Haozhi Industrial is 1.68 times less risky than Hangzhou Gisway. The stock trades about -0.25 of its potential returns per unit of risk. The Hangzhou Gisway Information is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 3,310 in Hangzhou Gisway Information on October 14, 2024 and sell it today you would lose (335.00) from holding Hangzhou Gisway Information or give up 10.12% 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. Hangzhou Gisway Information
Performance |
| Timeline |
| Guangzhou Haozhi Ind |
| Hangzhou Gisway Info |
Guangzhou Haozhi and Hangzhou Gisway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haozhi and Hangzhou Gisway
The main advantage of trading using opposite Guangzhou Haozhi and Hangzhou Gisway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haozhi position performs unexpectedly, Hangzhou Gisway 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 Hangzhou Gisway will offset losses from the drop in Hangzhou Gisway'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 |
| Hangzhou Gisway vs. Tianjin Ruixin Technology | Hangzhou Gisway vs. Fujian Longzhou Transportation | Hangzhou Gisway vs. Heilongjiang Transport Development | Hangzhou Gisway vs. Jiangsu Jinling Sports |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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