Correlation Between Guangdong Xiongsu and Weihai Honglin
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Xiongsu Technology and Weihai Honglin Electronic, you can compare the effects of market volatilities on Guangdong Xiongsu and Weihai Honglin 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 Weihai Honglin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Xiongsu and Weihai Honglin.
Diversification Opportunities for Guangdong Xiongsu and Weihai Honglin
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and Weihai is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Xiongsu Technology and Weihai Honglin Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weihai Honglin Electronic 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 Weihai Honglin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weihai Honglin Electronic has no effect on the direction of Guangdong Xiongsu i.e., Guangdong Xiongsu and Weihai Honglin go up and down completely randomly.
Pair Corralation between Guangdong Xiongsu and Weihai Honglin
Assuming the 90 days trading horizon Guangdong Xiongsu Technology is expected to under-perform the Weihai Honglin. In addition to that, Guangdong Xiongsu is 1.71 times more volatile than Weihai Honglin Electronic. It trades about -0.09 of its total potential returns per unit of risk. Weihai Honglin Electronic is currently generating about 0.09 per unit of volatility. If you would invest 1,409 in Weihai Honglin Electronic on October 12, 2024 and sell it today you would earn a total of 75.00 from holding Weihai Honglin Electronic or generate 5.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Xiongsu Technology vs. Weihai Honglin Electronic
Performance |
| Timeline |
| Guangdong Xiongsu |
| Weihai Honglin Electronic |
Guangdong Xiongsu and Weihai Honglin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Xiongsu and Weihai Honglin
The main advantage of trading using opposite Guangdong Xiongsu and Weihai Honglin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Xiongsu position performs unexpectedly, Weihai Honglin 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 Weihai Honglin will offset losses from the drop in Weihai Honglin's long position.| Guangdong Xiongsu vs. Songz Automobile Air | Guangdong Xiongsu vs. Fujian Longzhou Transportation | Guangdong Xiongsu vs. Sunwave Communications Co | Guangdong Xiongsu vs. Sichuan Fulin Transportation |
| Weihai Honglin vs. Guangdong Xiongsu Technology | Weihai Honglin vs. Anhui Huaren Health | Weihai Honglin vs. Guangzhou KingTeller Technology | Weihai Honglin vs. Sinofibers Technology Co |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |