Correlation Between Guangzhou Haozhi and Ningbo Fujia
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By analyzing existing cross correlation between Guangzhou Haozhi Industrial and Ningbo Fujia Industrial, you can compare the effects of market volatilities on Guangzhou Haozhi and Ningbo Fujia 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 Ningbo Fujia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haozhi and Ningbo Fujia.
Diversification Opportunities for Guangzhou Haozhi and Ningbo Fujia
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Ningbo is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haozhi Industrial and Ningbo Fujia Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Fujia Industrial 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 Ningbo Fujia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Fujia Industrial has no effect on the direction of Guangzhou Haozhi i.e., Guangzhou Haozhi and Ningbo Fujia go up and down completely randomly.
Pair Corralation between Guangzhou Haozhi and Ningbo Fujia
Assuming the 90 days trading horizon Guangzhou Haozhi Industrial is expected to generate 1.39 times more return on investment than Ningbo Fujia. However, Guangzhou Haozhi is 1.39 times more volatile than Ningbo Fujia Industrial. It trades about 0.18 of its potential returns per unit of risk. Ningbo Fujia Industrial is currently generating about 0.1 per unit of risk. If you would invest 1,174 in Guangzhou Haozhi Industrial on October 24, 2024 and sell it today you would earn a total of 1,053 from holding Guangzhou Haozhi Industrial or generate 89.69% 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. Ningbo Fujia Industrial
Performance |
| Timeline |
| Guangzhou Haozhi Ind |
| Ningbo Fujia Industrial |
Guangzhou Haozhi and Ningbo Fujia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haozhi and Ningbo Fujia
The main advantage of trading using opposite Guangzhou Haozhi and Ningbo Fujia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haozhi position performs unexpectedly, Ningbo Fujia 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 Ningbo Fujia will offset losses from the drop in Ningbo Fujia's long position.| Guangzhou Haozhi vs. Cowealth Medical China | Guangzhou Haozhi vs. Zhonghong Pulin Medical | Guangzhou Haozhi vs. Xiwang Foodstuffs Co | Guangzhou Haozhi vs. Allgens Medical Technology |
| Ningbo Fujia vs. Jinxiandai Information Industry | Ningbo Fujia vs. Peoples Insurance of | Ningbo Fujia vs. Xiamen Bank Co | Ningbo Fujia vs. Zhuhai Comleader Information |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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