Correlation Between Huafa Industrial and Guangzhou Jinyi
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By analyzing existing cross correlation between Huafa Industrial Co and Guangzhou Jinyi Media, you can compare the effects of market volatilities on Huafa Industrial and Guangzhou Jinyi 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 Guangzhou Jinyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huafa Industrial and Guangzhou Jinyi.
Diversification Opportunities for Huafa Industrial and Guangzhou Jinyi
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Huafa and Guangzhou is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Huafa Industrial Co and Guangzhou Jinyi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jinyi Media 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 Guangzhou Jinyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jinyi Media has no effect on the direction of Huafa Industrial i.e., Huafa Industrial and Guangzhou Jinyi go up and down completely randomly.
Pair Corralation between Huafa Industrial and Guangzhou Jinyi
Assuming the 90 days trading horizon Huafa Industrial Co is expected to under-perform the Guangzhou Jinyi. But the stock apears to be less risky and, when comparing its historical volatility, Huafa Industrial Co is 2.47 times less risky than Guangzhou Jinyi. The stock trades about -0.21 of its potential returns per unit of risk. The Guangzhou Jinyi Media is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 716.00 in Guangzhou Jinyi Media on November 5, 2024 and sell it today you would earn a total of 78.00 from holding Guangzhou Jinyi Media or generate 10.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huafa Industrial Co vs. Guangzhou Jinyi Media
Performance |
| Timeline |
| Huafa Industrial |
| Guangzhou Jinyi Media |
Huafa Industrial and Guangzhou Jinyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huafa Industrial and Guangzhou Jinyi
The main advantage of trading using opposite Huafa Industrial and Guangzhou Jinyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huafa Industrial position performs unexpectedly, Guangzhou Jinyi 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 Jinyi will offset losses from the drop in Guangzhou Jinyi's long position.| Huafa Industrial vs. Sinosteel Engineering and | Huafa Industrial vs. Fangda Special Steel | Huafa Industrial vs. Tongxing Environmental Protection | Huafa Industrial vs. GreenTech Environmental Co |
| Guangzhou Jinyi vs. Namchow Food Group | Guangzhou Jinyi vs. Suzhou Weizhixiang Food | Guangzhou Jinyi vs. Jilin Jlu Communication | Guangzhou Jinyi vs. Easyhome New Retail |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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