Correlation Between Jiangsu Zhongtian and Guangzhou Haozhi
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By analyzing existing cross correlation between Jiangsu Zhongtian Technology and Guangzhou Haozhi Industrial, you can compare the effects of market volatilities on Jiangsu Zhongtian and Guangzhou Haozhi 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 Jiangsu Zhongtian with a short position of Guangzhou Haozhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Zhongtian and Guangzhou Haozhi.
Diversification Opportunities for Jiangsu Zhongtian and Guangzhou Haozhi
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jiangsu and Guangzhou is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Zhongtian Technology and Guangzhou Haozhi Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haozhi Ind and Jiangsu Zhongtian 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 Jiangsu Zhongtian Technology are associated (or correlated) with Guangzhou Haozhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haozhi Ind has no effect on the direction of Jiangsu Zhongtian i.e., Jiangsu Zhongtian and Guangzhou Haozhi go up and down completely randomly.
Pair Corralation between Jiangsu Zhongtian and Guangzhou Haozhi
Assuming the 90 days trading horizon Jiangsu Zhongtian Technology is expected to generate 0.32 times more return on investment than Guangzhou Haozhi. However, Jiangsu Zhongtian Technology is 3.13 times less risky than Guangzhou Haozhi. It trades about -0.68 of its potential returns per unit of risk. Guangzhou Haozhi Industrial is currently generating about -0.25 per unit of risk. If you would invest 1,562 in Jiangsu Zhongtian Technology on October 14, 2024 and sell it today you would lose (250.00) from holding Jiangsu Zhongtian Technology or give up 16.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Zhongtian Technology vs. Guangzhou Haozhi Industrial
Performance |
| Timeline |
| Jiangsu Zhongtian |
| Guangzhou Haozhi Ind |
Jiangsu Zhongtian and Guangzhou Haozhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Zhongtian and Guangzhou Haozhi
The main advantage of trading using opposite Jiangsu Zhongtian and Guangzhou Haozhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Zhongtian position performs unexpectedly, Guangzhou Haozhi 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 Guangzhou Haozhi will offset losses from the drop in Guangzhou Haozhi's long position.| Jiangsu Zhongtian vs. Pengxin International Mining | Jiangsu Zhongtian vs. Jiugui Liquor Co | Jiangsu Zhongtian vs. Rising Nonferrous Metals | Jiangsu Zhongtian vs. Hubei Geoway Investment |
| Guangzhou Haozhi vs. Beijing Yanjing Brewery | Guangzhou Haozhi vs. Anhui Transport Consulting | Guangzhou Haozhi vs. Chengdu Xinzhu RoadBridge | Guangzhou Haozhi vs. Shaanxi Construction Machinery |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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