Correlation Between Huafa Industrial and GRG Banking
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By analyzing existing cross correlation between Huafa Industrial Co and GRG Banking Equipment, you can compare the effects of market volatilities on Huafa Industrial and GRG Banking 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 Huafa Industrial with a short position of GRG Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huafa Industrial and GRG Banking.
Diversification Opportunities for Huafa Industrial and GRG Banking
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Huafa and GRG is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Huafa Industrial Co and GRG Banking Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRG Banking Equipment and Huafa Industrial 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 Huafa Industrial Co are associated (or correlated) with GRG Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRG Banking Equipment has no effect on the direction of Huafa Industrial i.e., Huafa Industrial and GRG Banking go up and down completely randomly.
Pair Corralation between Huafa Industrial and GRG Banking
Assuming the 90 days trading horizon Huafa Industrial Co is expected to under-perform the GRG Banking. In addition to that, Huafa Industrial is 1.14 times more volatile than GRG Banking Equipment. It trades about -0.04 of its total potential returns per unit of risk. GRG Banking Equipment is currently generating about 0.01 per unit of volatility. If you would invest 1,208 in GRG Banking Equipment on August 30, 2024 and sell it today you would lose (13.00) from holding GRG Banking Equipment or give up 1.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huafa Industrial Co vs. GRG Banking Equipment
Performance |
| Timeline |
| Huafa Industrial |
| GRG Banking Equipment |
Huafa Industrial and GRG Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huafa Industrial and GRG Banking
The main advantage of trading using opposite Huafa Industrial and GRG Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huafa Industrial position performs unexpectedly, GRG Banking 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 GRG Banking will offset losses from the drop in GRG Banking's long position.| Huafa Industrial vs. Cambricon Technologies Corp | Huafa Industrial vs. Empyrean Technology Co | Huafa Industrial vs. Kuang Chi Technologies | Huafa Industrial vs. Gansu Jiu Steel |
| GRG Banking vs. China State Construction | GRG Banking vs. Huafa Industrial Co | GRG Banking vs. China International Capital | GRG Banking vs. Kweichow Moutai 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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