Correlation Between Guangzhou Haozhi and Hainan Mining
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By analyzing existing cross correlation between Guangzhou Haozhi Industrial and Hainan Mining Co, you can compare the effects of market volatilities on Guangzhou Haozhi and Hainan Mining 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 Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haozhi and Hainan Mining.
Diversification Opportunities for Guangzhou Haozhi and Hainan Mining
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Hainan is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haozhi Industrial and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan 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 Hainan Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Mining has no effect on the direction of Guangzhou Haozhi i.e., Guangzhou Haozhi and Hainan Mining go up and down completely randomly.
Pair Corralation between Guangzhou Haozhi and Hainan Mining
Assuming the 90 days trading horizon Guangzhou Haozhi Industrial is expected to generate 2.96 times more return on investment than Hainan Mining. However, Guangzhou Haozhi is 2.96 times more volatile than Hainan Mining Co. It trades about 0.09 of its potential returns per unit of risk. Hainan Mining Co is currently generating about 0.03 per unit of risk. If you would invest 1,696 in Guangzhou Haozhi Industrial on September 1, 2024 and sell it today you would earn a total of 148.00 from holding Guangzhou Haozhi Industrial or generate 8.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haozhi Industrial vs. Hainan Mining Co
Performance |
| Timeline |
| Guangzhou Haozhi Ind |
| Hainan Mining |
Guangzhou Haozhi and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haozhi and Hainan Mining
The main advantage of trading using opposite Guangzhou Haozhi and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haozhi position performs unexpectedly, Hainan Mining 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 Hainan Mining will offset losses from the drop in Hainan Mining's long position.| Guangzhou Haozhi vs. New China Life | Guangzhou Haozhi vs. Ming Yang Smart | Guangzhou Haozhi vs. 159681 | Guangzhou Haozhi vs. 159005 |
| Hainan Mining vs. Zijin Mining Group | Hainan Mining vs. Wanhua Chemical Group | Hainan Mining vs. Baoshan Iron Steel | Hainan Mining 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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