Correlation Between Guangxi Wuzhou and HMTNew Technical
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By analyzing existing cross correlation between Guangxi Wuzhou Communications and HMTNew Technical, you can compare the effects of market volatilities on Guangxi Wuzhou and HMTNew Technical 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 HMTNew Technical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Wuzhou and HMTNew Technical.
Diversification Opportunities for Guangxi Wuzhou and HMTNew Technical
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangxi and HMTNew is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Wuzhou Communications and HMTNew Technical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HMTNew Technical 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 HMTNew Technical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HMTNew Technical has no effect on the direction of Guangxi Wuzhou i.e., Guangxi Wuzhou and HMTNew Technical go up and down completely randomly.
Pair Corralation between Guangxi Wuzhou and HMTNew Technical
Assuming the 90 days trading horizon Guangxi Wuzhou Communications is expected to generate 0.62 times more return on investment than HMTNew Technical. However, Guangxi Wuzhou Communications is 1.61 times less risky than HMTNew Technical. It trades about 0.03 of its potential returns per unit of risk. HMTNew Technical is currently generating about 0.0 per unit of risk. If you would invest 329.00 in Guangxi Wuzhou Communications on September 12, 2024 and sell it today you would earn a total of 71.00 from holding Guangxi Wuzhou Communications or generate 21.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Guangxi Wuzhou Communications vs. HMTNew Technical
Performance |
| Timeline |
| Guangxi Wuzhou Commu |
| HMTNew Technical |
Guangxi Wuzhou and HMTNew Technical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Wuzhou and HMTNew Technical
The main advantage of trading using opposite Guangxi Wuzhou and HMTNew Technical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Wuzhou position performs unexpectedly, HMTNew Technical 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 HMTNew Technical will offset losses from the drop in HMTNew Technical's long position.| Guangxi Wuzhou vs. Agricultural Bank of | Guangxi Wuzhou vs. Industrial and Commercial | Guangxi Wuzhou vs. Bank of China | Guangxi Wuzhou vs. PetroChina Co Ltd |
| HMTNew Technical vs. Guangxi Wuzhou Communications | HMTNew Technical vs. Lander Sports Development | HMTNew Technical vs. Jinhui Liquor Co | HMTNew Technical vs. Guangdong Shenglu Telecommunication |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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