Correlation Between Huafa Industrial and Guilin Seamild
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By analyzing existing cross correlation between Huafa Industrial Co and Guilin Seamild Foods, you can compare the effects of market volatilities on Huafa Industrial and Guilin Seamild 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 Guilin Seamild. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huafa Industrial and Guilin Seamild.
Diversification Opportunities for Huafa Industrial and Guilin Seamild
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Huafa and Guilin is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Huafa Industrial Co and Guilin Seamild Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guilin Seamild Foods 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 Guilin Seamild. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guilin Seamild Foods has no effect on the direction of Huafa Industrial i.e., Huafa Industrial and Guilin Seamild go up and down completely randomly.
Pair Corralation between Huafa Industrial and Guilin Seamild
Assuming the 90 days trading horizon Huafa Industrial is expected to generate 3.95 times less return on investment than Guilin Seamild. In addition to that, Huafa Industrial is 1.03 times more volatile than Guilin Seamild Foods. It trades about 0.0 of its total potential returns per unit of risk. Guilin Seamild Foods is currently generating about 0.02 per unit of volatility. If you would invest 1,436 in Guilin Seamild Foods on September 4, 2024 and sell it today you would earn a total of 47.00 from holding Guilin Seamild Foods or generate 3.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huafa Industrial Co vs. Guilin Seamild Foods
Performance |
| Timeline |
| Huafa Industrial |
| Guilin Seamild Foods |
Huafa Industrial and Guilin Seamild Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huafa Industrial and Guilin Seamild
The main advantage of trading using opposite Huafa Industrial and Guilin Seamild positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huafa Industrial position performs unexpectedly, Guilin Seamild 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 Guilin Seamild will offset losses from the drop in Guilin Seamild's long position.| Huafa Industrial vs. Tongyu Communication | Huafa Industrial vs. Jiangsu Financial Leasing | Huafa Industrial vs. Iat Automobile Technology | Huafa Industrial vs. Agricultural Bank of |
| Guilin Seamild vs. Poly Real Estate | Guilin Seamild vs. China Vanke Co | Guilin Seamild vs. China Merchants Shekou | Guilin Seamild vs. Huafa Industrial 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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