Correlation Between Guangxi Wuzhou and Hunan Tyen
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By analyzing existing cross correlation between Guangxi Wuzhou Communications and Hunan Tyen Machinery, you can compare the effects of market volatilities on Guangxi Wuzhou and Hunan Tyen 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 Hunan Tyen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Wuzhou and Hunan Tyen.
Diversification Opportunities for Guangxi Wuzhou and Hunan Tyen
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangxi and Hunan is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Wuzhou Communications and Hunan Tyen Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Tyen Machinery 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 Hunan Tyen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Tyen Machinery has no effect on the direction of Guangxi Wuzhou i.e., Guangxi Wuzhou and Hunan Tyen go up and down completely randomly.
Pair Corralation between Guangxi Wuzhou and Hunan Tyen
Assuming the 90 days trading horizon Guangxi Wuzhou Communications is expected to generate 1.39 times more return on investment than Hunan Tyen. However, Guangxi Wuzhou is 1.39 times more volatile than Hunan Tyen Machinery. It trades about 0.09 of its potential returns per unit of risk. Hunan Tyen Machinery is currently generating about -0.1 per unit of risk. If you would invest 426.00 in Guangxi Wuzhou Communications on October 14, 2024 and sell it today you would earn a total of 31.00 from holding Guangxi Wuzhou Communications or generate 7.28% 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. Hunan Tyen Machinery
Performance |
| Timeline |
| Guangxi Wuzhou Commu |
| Hunan Tyen Machinery |
Guangxi Wuzhou and Hunan Tyen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Wuzhou and Hunan Tyen
The main advantage of trading using opposite Guangxi Wuzhou and Hunan Tyen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Wuzhou position performs unexpectedly, Hunan Tyen 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 Hunan Tyen will offset losses from the drop in Hunan Tyen's long position.| Guangxi Wuzhou vs. Anhui Tongguan Copper | Guangxi Wuzhou vs. Guocheng Mining Co | Guangxi Wuzhou vs. Chengdu Spaceon Electronics | Guangxi Wuzhou vs. Hainan Mining Co |
| Hunan Tyen vs. Guangxi Wuzhou Communications | Hunan Tyen vs. Quectel Wireless Solutions | Hunan Tyen vs. Nanjing Putian Telecommunications | Hunan Tyen vs. Suzhou Mingzhi Technology |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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