Correlation Between Guangxi Wuzhou and Hua Xia
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By analyzing existing cross correlation between Guangxi Wuzhou Communications and Hua Xia Bank, you can compare the effects of market volatilities on Guangxi Wuzhou and Hua Xia 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 Hua Xia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Wuzhou and Hua Xia.
Diversification Opportunities for Guangxi Wuzhou and Hua Xia
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangxi and Hua is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Wuzhou Communications and Hua Xia Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hua Xia Bank 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 Hua Xia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hua Xia Bank has no effect on the direction of Guangxi Wuzhou i.e., Guangxi Wuzhou and Hua Xia go up and down completely randomly.
Pair Corralation between Guangxi Wuzhou and Hua Xia
Assuming the 90 days trading horizon Guangxi Wuzhou Communications is expected to under-perform the Hua Xia. In addition to that, Guangxi Wuzhou is 3.65 times more volatile than Hua Xia Bank. It trades about -0.16 of its total potential returns per unit of risk. Hua Xia Bank is currently generating about -0.17 per unit of volatility. If you would invest 785.00 in Hua Xia Bank on October 24, 2024 and sell it today you would lose (32.00) from holding Hua Xia Bank or give up 4.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangxi Wuzhou Communications vs. Hua Xia Bank
Performance |
| Timeline |
| Guangxi Wuzhou Commu |
| Hua Xia Bank |
Guangxi Wuzhou and Hua Xia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Wuzhou and Hua Xia
The main advantage of trading using opposite Guangxi Wuzhou and Hua Xia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Wuzhou position performs unexpectedly, Hua Xia 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 Hua Xia will offset losses from the drop in Hua Xia's long position.| Guangxi Wuzhou vs. JuneYao Dairy Co | Guangxi Wuzhou vs. HaiXin Foods Co | Guangxi Wuzhou vs. Anji Foodstuff Co | Guangxi Wuzhou vs. Jointo Energy Investment |
| Hua Xia vs. Industrial and Commercial | Hua Xia vs. China Construction Bank | Hua Xia vs. Bank of China | Hua Xia vs. Agricultural Bank of |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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