Correlation Between Guangzhou Haozhi and Tibet Huayu
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By analyzing existing cross correlation between Guangzhou Haozhi Industrial and Tibet Huayu Mining, you can compare the effects of market volatilities on Guangzhou Haozhi and Tibet Huayu 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 Tibet Huayu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haozhi and Tibet Huayu.
Diversification Opportunities for Guangzhou Haozhi and Tibet Huayu
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Tibet is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haozhi Industrial and Tibet Huayu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tibet Huayu Mining 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 Tibet Huayu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tibet Huayu Mining has no effect on the direction of Guangzhou Haozhi i.e., Guangzhou Haozhi and Tibet Huayu go up and down completely randomly.
Pair Corralation between Guangzhou Haozhi and Tibet Huayu
Assuming the 90 days trading horizon Guangzhou Haozhi Industrial is expected to under-perform the Tibet Huayu. In addition to that, Guangzhou Haozhi is 2.08 times more volatile than Tibet Huayu Mining. It trades about -0.25 of its total potential returns per unit of risk. Tibet Huayu Mining is currently generating about -0.49 per unit of volatility. If you would invest 1,456 in Tibet Huayu Mining on October 14, 2024 and sell it today you would lose (253.00) from holding Tibet Huayu Mining or give up 17.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haozhi Industrial vs. Tibet Huayu Mining
Performance |
| Timeline |
| Guangzhou Haozhi Ind |
| Tibet Huayu Mining |
Guangzhou Haozhi and Tibet Huayu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haozhi and Tibet Huayu
The main advantage of trading using opposite Guangzhou Haozhi and Tibet Huayu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haozhi position performs unexpectedly, Tibet Huayu 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 Tibet Huayu will offset losses from the drop in Tibet Huayu'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 |
| Tibet Huayu vs. Zijin Mining Group | Tibet Huayu vs. Wanhua Chemical Group | Tibet Huayu vs. Baoshan Iron Steel | Tibet Huayu vs. Shandong Gold Mining |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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