Correlation Between Guangxi Wuzhou and Huafa Industrial
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By analyzing existing cross correlation between Guangxi Wuzhou Communications and Huafa Industrial Co, you can compare the effects of market volatilities on Guangxi Wuzhou and Huafa Industrial 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 Huafa Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Wuzhou and Huafa Industrial.
Diversification Opportunities for Guangxi Wuzhou and Huafa Industrial
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Guangxi and Huafa is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Wuzhou Communications and Huafa Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huafa Industrial 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 Huafa Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huafa Industrial has no effect on the direction of Guangxi Wuzhou i.e., Guangxi Wuzhou and Huafa Industrial go up and down completely randomly.
Pair Corralation between Guangxi Wuzhou and Huafa Industrial
Assuming the 90 days trading horizon Guangxi Wuzhou Communications is expected to generate 1.73 times more return on investment than Huafa Industrial. However, Guangxi Wuzhou is 1.73 times more volatile than Huafa Industrial Co. It trades about -0.09 of its potential returns per unit of risk. Huafa Industrial Co is currently generating about -0.21 per unit of risk. If you would invest 454.00 in Guangxi Wuzhou Communications on November 6, 2024 and sell it today you would lose (20.00) from holding Guangxi Wuzhou Communications or give up 4.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangxi Wuzhou Communications vs. Huafa Industrial Co
Performance |
| Timeline |
| Guangxi Wuzhou Commu |
| Huafa Industrial |
Guangxi Wuzhou and Huafa Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Wuzhou and Huafa Industrial
The main advantage of trading using opposite Guangxi Wuzhou and Huafa Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Wuzhou position performs unexpectedly, Huafa Industrial 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 Huafa Industrial will offset losses from the drop in Huafa Industrial's long position.| Guangxi Wuzhou vs. Digital China Information | Guangxi Wuzhou vs. Road Environment Technology | Guangxi Wuzhou vs. XiAn Dagang Road | Guangxi Wuzhou vs. ButOne Information Corp |
| Huafa Industrial vs. Cultural Investment Holdings | Huafa Industrial vs. Tieling Newcity Investment | Huafa Industrial vs. Offcn Education Technology | Huafa Industrial vs. Jiangsu Phoenix Publishing |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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