Correlation Between Guangdong TianYiMa and Hygon Information
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By analyzing existing cross correlation between Guangdong TianYiMa Information and Hygon Information Technology, you can compare the effects of market volatilities on Guangdong TianYiMa and Hygon Information 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 TianYiMa with a short position of Hygon Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong TianYiMa and Hygon Information.
Diversification Opportunities for Guangdong TianYiMa and Hygon Information
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guangdong and Hygon is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong TianYiMa Information and Hygon Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hygon Information and Guangdong TianYiMa 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 TianYiMa Information are associated (or correlated) with Hygon Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hygon Information has no effect on the direction of Guangdong TianYiMa i.e., Guangdong TianYiMa and Hygon Information go up and down completely randomly.
Pair Corralation between Guangdong TianYiMa and Hygon Information
Assuming the 90 days trading horizon Guangdong TianYiMa Information is expected to generate 0.68 times more return on investment than Hygon Information. However, Guangdong TianYiMa Information is 1.47 times less risky than Hygon Information. It trades about 0.26 of its potential returns per unit of risk. Hygon Information Technology is currently generating about -0.06 per unit of risk. If you would invest 2,459 in Guangdong TianYiMa Information on November 5, 2024 and sell it today you would earn a total of 276.00 from holding Guangdong TianYiMa Information or generate 11.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong TianYiMa Information vs. Hygon Information Technology
Performance |
| Timeline |
| Guangdong TianYiMa |
| Hygon Information |
Guangdong TianYiMa and Hygon Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong TianYiMa and Hygon Information
The main advantage of trading using opposite Guangdong TianYiMa and Hygon Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong TianYiMa position performs unexpectedly, Hygon Information 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 Hygon Information will offset losses from the drop in Hygon Information's long position.| Guangdong TianYiMa vs. China State Construction | Guangdong TianYiMa vs. Poly Real Estate | Guangdong TianYiMa vs. China Vanke Co | Guangdong TianYiMa vs. China Merchants Shekou |
| Hygon Information vs. AUPU Home Style | Hygon Information vs. Shandong Homey Aquatic | Hygon Information vs. Heilongjiang Transport Development | Hygon Information vs. Xiamen Goldenhome 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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