Correlation Between Huafa Industrial and Guangzhou Haozhi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Huafa Industrial Co and Guangzhou Haozhi Industrial, you can compare the effects of market volatilities on Huafa Industrial and Guangzhou Haozhi 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 Haozhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huafa Industrial and Guangzhou Haozhi.
Diversification Opportunities for Huafa Industrial and Guangzhou Haozhi
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Huafa and Guangzhou is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Huafa Industrial Co and Guangzhou Haozhi Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haozhi Ind 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 Haozhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haozhi Ind has no effect on the direction of Huafa Industrial i.e., Huafa Industrial and Guangzhou Haozhi go up and down completely randomly.
Pair Corralation between Huafa Industrial and Guangzhou Haozhi
Assuming the 90 days trading horizon Huafa Industrial Co is expected to under-perform the Guangzhou Haozhi. But the stock apears to be less risky and, when comparing its historical volatility, Huafa Industrial Co is 1.7 times less risky than Guangzhou Haozhi. The stock trades about -0.02 of its potential returns per unit of risk. The Guangzhou Haozhi Industrial is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 874.00 in Guangzhou Haozhi Industrial on September 3, 2024 and sell it today you would earn a total of 970.00 from holding Guangzhou Haozhi Industrial or generate 110.98% 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. Guangzhou Haozhi Industrial
Performance |
| Timeline |
| Huafa Industrial |
| Guangzhou Haozhi Ind |
Huafa Industrial and Guangzhou Haozhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huafa Industrial and Guangzhou Haozhi
The main advantage of trading using opposite Huafa Industrial and Guangzhou Haozhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huafa Industrial position performs unexpectedly, Guangzhou Haozhi 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 Haozhi will offset losses from the drop in Guangzhou Haozhi's long position.| Huafa Industrial vs. Industrial and Commercial | Huafa Industrial vs. China Construction Bank | Huafa Industrial vs. Bank of China | Huafa Industrial vs. Agricultural Bank of |
| Guangzhou Haozhi vs. Cultural Investment Holdings | Guangzhou Haozhi vs. Gome Telecom Equipment | Guangzhou Haozhi vs. Bus Online Co | Guangzhou Haozhi vs. Holitech Technology 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Positions Ratings 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 | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |