Correlation Between Gem Year and Guangzhou Haige
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By analyzing existing cross correlation between Gem Year Industrial Co and Guangzhou Haige Communications, you can compare the effects of market volatilities on Gem Year 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 Gem Year with a short position of Guangzhou Haige. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gem Year and Guangzhou Haige.
Diversification Opportunities for Gem Year and Guangzhou Haige
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gem and Guangzhou is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Gem Year Industrial Co 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 Gem Year 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 Gem Year Industrial Co 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 Gem Year i.e., Gem Year and Guangzhou Haige go up and down completely randomly.
Pair Corralation between Gem Year and Guangzhou Haige
Assuming the 90 days trading horizon Gem Year Industrial Co is expected to generate 0.88 times more return on investment than Guangzhou Haige. However, Gem Year Industrial Co is 1.14 times less risky than Guangzhou Haige. It trades about 0.34 of its potential returns per unit of risk. Guangzhou Haige Communications is currently generating about 0.11 per unit of risk. If you would invest 408.00 in Gem Year Industrial Co on November 6, 2024 and sell it today you would earn a total of 41.00 from holding Gem Year Industrial Co or generate 10.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gem Year Industrial Co vs. Guangzhou Haige Communications
Performance |
| Timeline |
| Gem Year Industrial |
| Guangzhou Haige Comm |
Gem Year and Guangzhou Haige Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gem Year and Guangzhou Haige
The main advantage of trading using opposite Gem Year and Guangzhou Haige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gem Year 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.| Gem Year vs. Time Publishing and | Gem Year vs. Northern United Publishing | Gem Year vs. Guangzhou Jointas Chemical | Gem Year vs. Shenzhen Noposion Agrochemicals |
| Guangzhou Haige vs. Huaibei Mining Holdings | Guangzhou Haige vs. Beingmate Baby Child | Guangzhou Haige vs. Western Mining Co | Guangzhou Haige vs. Guangdong Silvere Sci |
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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