Correlation Between Guangzhou Haozhi and Fuda Alloy
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By analyzing existing cross correlation between Guangzhou Haozhi Industrial and Fuda Alloy Materials, you can compare the effects of market volatilities on Guangzhou Haozhi and Fuda Alloy 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 Fuda Alloy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haozhi and Fuda Alloy.
Diversification Opportunities for Guangzhou Haozhi and Fuda Alloy
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Fuda is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haozhi Industrial and Fuda Alloy Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuda Alloy Materials 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 Fuda Alloy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuda Alloy Materials has no effect on the direction of Guangzhou Haozhi i.e., Guangzhou Haozhi and Fuda Alloy go up and down completely randomly.
Pair Corralation between Guangzhou Haozhi and Fuda Alloy
Assuming the 90 days trading horizon Guangzhou Haozhi Industrial is expected to under-perform the Fuda Alloy. In addition to that, Guangzhou Haozhi is 1.21 times more volatile than Fuda Alloy Materials. It trades about -0.07 of its total potential returns per unit of risk. Fuda Alloy Materials is currently generating about 0.07 per unit of volatility. If you would invest 1,361 in Fuda Alloy Materials on October 17, 2024 and sell it today you would earn a total of 60.00 from holding Fuda Alloy Materials or generate 4.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haozhi Industrial vs. Fuda Alloy Materials
Performance |
| Timeline |
| Guangzhou Haozhi Ind |
| Fuda Alloy Materials |
Guangzhou Haozhi and Fuda Alloy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haozhi and Fuda Alloy
The main advantage of trading using opposite Guangzhou Haozhi and Fuda Alloy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haozhi position performs unexpectedly, Fuda Alloy 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 Fuda Alloy will offset losses from the drop in Fuda Alloy's long position.| Guangzhou Haozhi vs. Iat Automobile Technology | Guangzhou Haozhi vs. Sublime China Information | Guangzhou Haozhi vs. Haima Automobile Group | Guangzhou Haozhi vs. Chongqing Changan Automobile |
| Fuda Alloy vs. Guangzhou Haozhi Industrial | Fuda Alloy vs. Hengli Industrial Development | Fuda Alloy vs. Rising Nonferrous Metals | Fuda Alloy vs. Ziel Home Furnishing |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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