Correlation Between Guangdong Xiongsu and Guangzhou Haozhi
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By analyzing existing cross correlation between Guangdong Xiongsu Technology and Guangzhou Haozhi Industrial, you can compare the effects of market volatilities on Guangdong Xiongsu and Guangzhou Haozhi 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 Guangdong Xiongsu with a short position of Guangzhou Haozhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Xiongsu and Guangzhou Haozhi.
Diversification Opportunities for Guangdong Xiongsu and Guangzhou Haozhi
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Guangzhou is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Xiongsu Technology and Guangzhou Haozhi Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haozhi Ind and Guangdong Xiongsu 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 Guangdong Xiongsu Technology are associated (or correlated) with Guangzhou Haozhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haozhi Ind has no effect on the direction of Guangdong Xiongsu i.e., Guangdong Xiongsu and Guangzhou Haozhi go up and down completely randomly.
Pair Corralation between Guangdong Xiongsu and Guangzhou Haozhi
Assuming the 90 days trading horizon Guangdong Xiongsu Technology is expected to under-perform the Guangzhou Haozhi. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Xiongsu Technology is 1.75 times less risky than Guangzhou Haozhi. The stock trades about -0.02 of its potential returns per unit of risk. The Guangzhou Haozhi Industrial is currently generating about 0.09 of returns per unit of risk over similar time horizon. 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 |
Guangdong Xiongsu Technology vs. Guangzhou Haozhi Industrial
Performance |
| Timeline |
| Guangdong Xiongsu |
| Guangzhou Haozhi Ind |
Guangdong Xiongsu and Guangzhou Haozhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Xiongsu and Guangzhou Haozhi
The main advantage of trading using opposite Guangdong Xiongsu and Guangzhou Haozhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Xiongsu position performs unexpectedly, Guangzhou Haozhi 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 Guangzhou Haozhi will offset losses from the drop in Guangzhou Haozhi's long position.| Guangdong Xiongsu vs. Industrial and Commercial | Guangdong Xiongsu vs. Agricultural Bank of | Guangdong Xiongsu vs. China Construction Bank | Guangdong Xiongsu vs. Bank of China |
| Guangzhou Haozhi vs. New China Life | Guangzhou Haozhi vs. Ming Yang Smart | Guangzhou Haozhi vs. 159681 | Guangzhou Haozhi vs. 159005 |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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