Correlation Between Vats Liquor and Guangzhou Haozhi
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By analyzing existing cross correlation between Vats Liquor Chain and Guangzhou Haozhi Industrial, you can compare the effects of market volatilities on Vats Liquor 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 Vats Liquor with a short position of Guangzhou Haozhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vats Liquor and Guangzhou Haozhi.
Diversification Opportunities for Vats Liquor and Guangzhou Haozhi
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vats and Guangzhou is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Vats Liquor Chain 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 Vats Liquor 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 Vats Liquor Chain 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 Vats Liquor i.e., Vats Liquor and Guangzhou Haozhi go up and down completely randomly.
Pair Corralation between Vats Liquor and Guangzhou Haozhi
Assuming the 90 days trading horizon Vats Liquor is expected to generate 13.88 times less return on investment than Guangzhou Haozhi. But when comparing it to its historical volatility, Vats Liquor Chain is 1.11 times less risky than Guangzhou Haozhi. It trades about 0.01 of its potential returns per unit of risk. Guangzhou Haozhi Industrial is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,082 in Guangzhou Haozhi Industrial on October 28, 2024 and sell it today you would earn a total of 249.00 from holding Guangzhou Haozhi Industrial or generate 11.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vats Liquor Chain vs. Guangzhou Haozhi Industrial
Performance |
| Timeline |
| Vats Liquor Chain |
| Guangzhou Haozhi Ind |
Vats Liquor and Guangzhou Haozhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vats Liquor and Guangzhou Haozhi
The main advantage of trading using opposite Vats Liquor and Guangzhou Haozhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vats Liquor 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.| Vats Liquor vs. GigaDevice SemiconductorBeiji | Vats Liquor vs. Glodon Software Co | Vats Liquor vs. Dareway Software Co | Vats Liquor vs. Thunder Software Technology |
| Guangzhou Haozhi vs. North Copper Shanxi | Guangzhou Haozhi vs. Jinhui Liquor Co | Guangzhou Haozhi vs. Shenyang Huitian Thermal | Guangzhou Haozhi vs. Guangdong Jingyi Metal |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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