Correlation Between Ningbo Thermal and Guangzhou Haige
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningbo Thermal Power and Guangzhou Haige Communications, you can compare the effects of market volatilities on Ningbo Thermal 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 Ningbo Thermal with a short position of Guangzhou Haige. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Thermal and Guangzhou Haige.
Diversification Opportunities for Ningbo Thermal and Guangzhou Haige
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ningbo and Guangzhou is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Thermal Power 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 Ningbo Thermal 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 Ningbo Thermal Power 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 Ningbo Thermal i.e., Ningbo Thermal and Guangzhou Haige go up and down completely randomly.
Pair Corralation between Ningbo Thermal and Guangzhou Haige
Assuming the 90 days trading horizon Ningbo Thermal is expected to generate 1.9 times less return on investment than Guangzhou Haige. But when comparing it to its historical volatility, Ningbo Thermal Power is 1.79 times less risky than Guangzhou Haige. It trades about 0.21 of its potential returns per unit of risk. Guangzhou Haige Communications is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 832.00 in Guangzhou Haige Communications on September 12, 2024 and sell it today you would earn a total of 441.00 from holding Guangzhou Haige Communications or generate 53.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Thermal Power vs. Guangzhou Haige Communications
Performance |
| Timeline |
| Ningbo Thermal Power |
| Guangzhou Haige Comm |
Ningbo Thermal and Guangzhou Haige Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Thermal and Guangzhou Haige
The main advantage of trading using opposite Ningbo Thermal and Guangzhou Haige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Thermal 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.| Ningbo Thermal vs. Bank of China | Ningbo Thermal vs. Kweichow Moutai Co | Ningbo Thermal vs. PetroChina Co Ltd | Ningbo Thermal vs. Bank of Communications |
| Guangzhou Haige vs. Industrial and Commercial | Guangzhou Haige vs. China Construction Bank | Guangzhou Haige vs. Bank of China | Guangzhou Haige vs. Agricultural Bank of |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |