Correlation Between Weihai Honglin and Guangdong Qunxing
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By analyzing existing cross correlation between Weihai Honglin Electronic and Guangdong Qunxing Toys, you can compare the effects of market volatilities on Weihai Honglin and Guangdong Qunxing 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 Weihai Honglin with a short position of Guangdong Qunxing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weihai Honglin and Guangdong Qunxing.
Diversification Opportunities for Weihai Honglin and Guangdong Qunxing
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Weihai and Guangdong is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Weihai Honglin Electronic and Guangdong Qunxing Toys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Qunxing Toys and Weihai Honglin 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 Weihai Honglin Electronic are associated (or correlated) with Guangdong Qunxing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Qunxing Toys has no effect on the direction of Weihai Honglin i.e., Weihai Honglin and Guangdong Qunxing go up and down completely randomly.
Pair Corralation between Weihai Honglin and Guangdong Qunxing
Assuming the 90 days trading horizon Weihai Honglin Electronic is expected to generate 1.16 times more return on investment than Guangdong Qunxing. However, Weihai Honglin is 1.16 times more volatile than Guangdong Qunxing Toys. It trades about 0.14 of its potential returns per unit of risk. Guangdong Qunxing Toys is currently generating about -0.29 per unit of risk. If you would invest 1,459 in Weihai Honglin Electronic on November 3, 2024 and sell it today you would earn a total of 148.00 from holding Weihai Honglin Electronic or generate 10.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weihai Honglin Electronic vs. Guangdong Qunxing Toys
Performance |
| Timeline |
| Weihai Honglin Electronic |
| Guangdong Qunxing Toys |
Weihai Honglin and Guangdong Qunxing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weihai Honglin and Guangdong Qunxing
The main advantage of trading using opposite Weihai Honglin and Guangdong Qunxing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weihai Honglin position performs unexpectedly, Guangdong Qunxing 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 Guangdong Qunxing will offset losses from the drop in Guangdong Qunxing's long position.| Weihai Honglin vs. Winner Medical Co | Weihai Honglin vs. East Money Information | Weihai Honglin vs. Juneyao Airlines | Weihai Honglin vs. Shandong Longquan Pipeline |
| Guangdong Qunxing vs. China Life Insurance | Guangdong Qunxing vs. National Silicon Industry | Guangdong Qunxing vs. Shanghai OPM Biosciences | Guangdong Qunxing vs. Nanhua Bio Medicine |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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