Correlation Between Guangxi Wuzhou and Haima Automobile
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By analyzing existing cross correlation between Guangxi Wuzhou Communications and Haima Automobile Group, you can compare the effects of market volatilities on Guangxi Wuzhou and Haima Automobile 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 Guangxi Wuzhou with a short position of Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Wuzhou and Haima Automobile.
Diversification Opportunities for Guangxi Wuzhou and Haima Automobile
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guangxi and Haima is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Wuzhou Communications and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile and Guangxi Wuzhou 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 Guangxi Wuzhou Communications are associated (or correlated) with Haima Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haima Automobile has no effect on the direction of Guangxi Wuzhou i.e., Guangxi Wuzhou and Haima Automobile go up and down completely randomly.
Pair Corralation between Guangxi Wuzhou and Haima Automobile
Assuming the 90 days trading horizon Guangxi Wuzhou Communications is expected to generate 0.66 times more return on investment than Haima Automobile. However, Guangxi Wuzhou Communications is 1.51 times less risky than Haima Automobile. It trades about 0.03 of its potential returns per unit of risk. Haima Automobile Group is currently generating about 0.0 per unit of risk. If you would invest 346.00 in Guangxi Wuzhou Communications on October 29, 2024 and sell it today you would earn a total of 88.00 from holding Guangxi Wuzhou Communications or generate 25.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangxi Wuzhou Communications vs. Haima Automobile Group
Performance |
| Timeline |
| Guangxi Wuzhou Commu |
| Haima Automobile |
Guangxi Wuzhou and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Wuzhou and Haima Automobile
The main advantage of trading using opposite Guangxi Wuzhou and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Wuzhou position performs unexpectedly, Haima Automobile 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 Haima Automobile will offset losses from the drop in Haima Automobile's long position.| Guangxi Wuzhou vs. Cabio Biotech Wuhan | Guangxi Wuzhou vs. Holitech Technology Co | Guangxi Wuzhou vs. Sharetronic Data Technology | Guangxi Wuzhou vs. Lander Sports Development |
| Haima Automobile vs. China Longyuan Power | Haima Automobile vs. PetroChina Co Ltd | Haima Automobile vs. Guangxi Guiguan Electric | Haima Automobile vs. Yantai North Andre |
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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