Correlation Between Guangzhou Haozhi and Xiamen Bank
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By analyzing existing cross correlation between Guangzhou Haozhi Industrial and Xiamen Bank Co, you can compare the effects of market volatilities on Guangzhou Haozhi and Xiamen Bank 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 Xiamen Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haozhi and Xiamen Bank.
Diversification Opportunities for Guangzhou Haozhi and Xiamen Bank
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Xiamen is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haozhi Industrial and Xiamen Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Bank 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 Xiamen Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Bank has no effect on the direction of Guangzhou Haozhi i.e., Guangzhou Haozhi and Xiamen Bank go up and down completely randomly.
Pair Corralation between Guangzhou Haozhi and Xiamen Bank
Assuming the 90 days trading horizon Guangzhou Haozhi Industrial is expected to generate 3.33 times more return on investment than Xiamen Bank. However, Guangzhou Haozhi is 3.33 times more volatile than Xiamen Bank Co. It trades about 0.06 of its potential returns per unit of risk. Xiamen Bank Co is currently generating about 0.02 per unit of risk. If you would invest 990.00 in Guangzhou Haozhi Industrial on October 31, 2024 and sell it today you would earn a total of 1,199 from holding Guangzhou Haozhi Industrial or generate 121.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haozhi Industrial vs. Xiamen Bank Co
Performance |
| Timeline |
| Guangzhou Haozhi Ind |
| Xiamen Bank |
Guangzhou Haozhi and Xiamen Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haozhi and Xiamen Bank
The main advantage of trading using opposite Guangzhou Haozhi and Xiamen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haozhi position performs unexpectedly, Xiamen Bank 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 Xiamen Bank will offset losses from the drop in Xiamen Bank's 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 |
| Xiamen Bank vs. Pengxin International Mining | Xiamen Bank vs. Guangdong Qunxing Toys | Xiamen Bank vs. Hunan Investment Group | Xiamen Bank vs. Chengtun Mining Group |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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