Correlation Between Weihai Honglin and Guangzhou Jointas
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By analyzing existing cross correlation between Weihai Honglin Electronic and Guangzhou Jointas Chemical, you can compare the effects of market volatilities on Weihai Honglin and Guangzhou Jointas 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 Guangzhou Jointas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weihai Honglin and Guangzhou Jointas.
Diversification Opportunities for Weihai Honglin and Guangzhou Jointas
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Weihai and Guangzhou is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Weihai Honglin Electronic and Guangzhou Jointas Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jointas 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 Guangzhou Jointas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jointas has no effect on the direction of Weihai Honglin i.e., Weihai Honglin and Guangzhou Jointas go up and down completely randomly.
Pair Corralation between Weihai Honglin and Guangzhou Jointas
Assuming the 90 days trading horizon Weihai Honglin Electronic is expected to generate 1.87 times more return on investment than Guangzhou Jointas. However, Weihai Honglin is 1.87 times more volatile than Guangzhou Jointas Chemical. It trades about 0.15 of its potential returns per unit of risk. Guangzhou Jointas Chemical is currently generating about 0.08 per unit of risk. If you would invest 1,423 in Weihai Honglin Electronic on October 29, 2024 and sell it today you would earn a total of 184.00 from holding Weihai Honglin Electronic or generate 12.93% 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. Guangzhou Jointas Chemical
Performance |
| Timeline |
| Weihai Honglin Electronic |
| Guangzhou Jointas |
Weihai Honglin and Guangzhou Jointas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weihai Honglin and Guangzhou Jointas
The main advantage of trading using opposite Weihai Honglin and Guangzhou Jointas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weihai Honglin position performs unexpectedly, Guangzhou Jointas 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 Jointas will offset losses from the drop in Guangzhou Jointas' long position.| Weihai Honglin vs. Fujian Boss Software | Weihai Honglin vs. Inspur Software Co | Weihai Honglin vs. HaiXin Foods Co | Weihai Honglin vs. Linewell Software Co |
| Guangzhou Jointas vs. Jiangyin Jianghua Microelectronics | Guangzhou Jointas vs. Weihai Honglin Electronic | Guangzhou Jointas vs. Lontium Semiconductor Corp | Guangzhou Jointas vs. Nexchip Semiconductor Corp |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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