Correlation Between Kailong High and Guangzhou Haige
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By analyzing existing cross correlation between Kailong High Technology and Guangzhou Haige Communications, you can compare the effects of market volatilities on Kailong High and Guangzhou Haige 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 Kailong High with a short position of Guangzhou Haige. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kailong High and Guangzhou Haige.
Diversification Opportunities for Kailong High and Guangzhou Haige
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kailong and Guangzhou is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Kailong High Technology and Guangzhou Haige Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haige Comm and Kailong High 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 Kailong High Technology are associated (or correlated) with Guangzhou Haige. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haige Comm has no effect on the direction of Kailong High i.e., Kailong High and Guangzhou Haige go up and down completely randomly.
Pair Corralation between Kailong High and Guangzhou Haige
Assuming the 90 days trading horizon Kailong High is expected to generate 1.64 times less return on investment than Guangzhou Haige. In addition to that, Kailong High is 1.67 times more volatile than Guangzhou Haige Communications. It trades about 0.0 of its total potential returns per unit of risk. Guangzhou Haige Communications is currently generating about 0.01 per unit of volatility. If you would invest 1,038 in Guangzhou Haige Communications on October 18, 2024 and sell it today you would lose (37.00) from holding Guangzhou Haige Communications or give up 3.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kailong High Technology vs. Guangzhou Haige Communications
Performance |
| Timeline |
| Kailong High Technology |
| Guangzhou Haige Comm |
Kailong High and Guangzhou Haige Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kailong High and Guangzhou Haige
The main advantage of trading using opposite Kailong High and Guangzhou Haige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kailong High position performs unexpectedly, Guangzhou Haige 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 Haige will offset losses from the drop in Guangzhou Haige's long position.| Kailong High vs. Suzhou Douson Drilling | Kailong High vs. ButOne Information Corp | Kailong High vs. Zhejiang Kingland Pipeline | Kailong High vs. Everjoy Health Group |
| Guangzhou Haige vs. Shanghai Yanpu Metal | Guangzhou Haige vs. Rising Nonferrous Metals | Guangzhou Haige vs. Uroica Mining Safety | Guangzhou Haige vs. Jinlong Machinery Electronic |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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