Correlation Between Guangzhou Haozhi and Hubei Geoway
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou Haozhi Industrial and Hubei Geoway Investment, you can compare the effects of market volatilities on Guangzhou Haozhi and Hubei Geoway 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 Hubei Geoway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haozhi and Hubei Geoway.
Diversification Opportunities for Guangzhou Haozhi and Hubei Geoway
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Hubei is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haozhi Industrial and Hubei Geoway Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Geoway Investment 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 Hubei Geoway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Geoway Investment has no effect on the direction of Guangzhou Haozhi i.e., Guangzhou Haozhi and Hubei Geoway go up and down completely randomly.
Pair Corralation between Guangzhou Haozhi and Hubei Geoway
Assuming the 90 days trading horizon Guangzhou Haozhi Industrial is expected to under-perform the Hubei Geoway. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Haozhi Industrial is 1.08 times less risky than Hubei Geoway. The stock trades about -0.25 of its potential returns per unit of risk. The Hubei Geoway Investment is currently generating about -0.22 of returns per unit of risk over similar time horizon. If you would invest 181.00 in Hubei Geoway Investment on October 14, 2024 and sell it today you would lose (34.00) from holding Hubei Geoway Investment or give up 18.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haozhi Industrial vs. Hubei Geoway Investment
Performance |
| Timeline |
| Guangzhou Haozhi Ind |
| Hubei Geoway Investment |
Guangzhou Haozhi and Hubei Geoway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haozhi and Hubei Geoway
The main advantage of trading using opposite Guangzhou Haozhi and Hubei Geoway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haozhi position performs unexpectedly, Hubei Geoway 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 Hubei Geoway will offset losses from the drop in Hubei Geoway's long position.| Guangzhou Haozhi vs. Beijing Yanjing Brewery | Guangzhou Haozhi vs. Anhui Transport Consulting | Guangzhou Haozhi vs. Chengdu Xinzhu RoadBridge | Guangzhou Haozhi vs. Shaanxi Construction Machinery |
| Hubei Geoway vs. Muyuan Foodstuff Co | Hubei Geoway vs. Beijing Sanyuan Foods | Hubei Geoway vs. Youyou Foods Co | Hubei Geoway vs. Bohai Leasing Co |
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.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Commodity Directory Find actively traded commodities issued by global exchanges |