Correlation Between Sunny Loan and Guangzhou Haige
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By analyzing existing cross correlation between Sunny Loan Top and Guangzhou Haige Communications, you can compare the effects of market volatilities on Sunny Loan and Guangzhou Haige 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 Sunny Loan with a short position of Guangzhou Haige. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Loan and Guangzhou Haige.
Diversification Opportunities for Sunny Loan and Guangzhou Haige
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sunny and Guangzhou is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Loan Top and Guangzhou Haige Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haige Comm and Sunny Loan 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 Sunny Loan Top are associated (or correlated) with Guangzhou Haige. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haige Comm has no effect on the direction of Sunny Loan i.e., Sunny Loan and Guangzhou Haige go up and down completely randomly.
Pair Corralation between Sunny Loan and Guangzhou Haige
Assuming the 90 days trading horizon Sunny Loan Top is expected to generate 1.35 times more return on investment than Guangzhou Haige. However, Sunny Loan is 1.35 times more volatile than Guangzhou Haige Communications. It trades about 0.06 of its potential returns per unit of risk. Guangzhou Haige Communications is currently generating about 0.01 per unit of risk. If you would invest 708.00 in Sunny Loan Top on August 29, 2024 and sell it today you would earn a total of 297.00 from holding Sunny Loan Top or generate 41.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Loan Top vs. Guangzhou Haige Communications
Performance |
| Timeline |
| Sunny Loan Top |
| Guangzhou Haige Comm |
Sunny Loan and Guangzhou Haige Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Loan and Guangzhou Haige
The main advantage of trading using opposite Sunny Loan and Guangzhou Haige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Loan position performs unexpectedly, Guangzhou Haige 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 Haige will offset losses from the drop in Guangzhou Haige's long position.| Sunny Loan vs. Guangdong Qunxing Toys | Sunny Loan vs. Anji Foodstuff Co | Sunny Loan vs. Youyou Foods Co | Sunny Loan vs. Zhongyin Babi Food |
| Guangzhou Haige vs. Will Semiconductor Co | Guangzhou Haige vs. RoadMain T Co | Guangzhou Haige vs. Semiconductor Manufacturing Electronics | Guangzhou Haige vs. Guizhou BroadcastingTV Info |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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