Correlation Between Ye Chiu and Guangzhou Haozhi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ye Chiu Metal and Guangzhou Haozhi Industrial, you can compare the effects of market volatilities on Ye Chiu 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 Ye Chiu with a short position of Guangzhou Haozhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Guangzhou Haozhi.
Diversification Opportunities for Ye Chiu and Guangzhou Haozhi
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 601388 and Guangzhou is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal 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 Ye Chiu 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 Ye Chiu Metal 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 Ye Chiu i.e., Ye Chiu and Guangzhou Haozhi go up and down completely randomly.
Pair Corralation between Ye Chiu and Guangzhou Haozhi
Assuming the 90 days trading horizon Ye Chiu is expected to generate 14.89 times less return on investment than Guangzhou Haozhi. But when comparing it to its historical volatility, Ye Chiu Metal is 2.87 times less risky than Guangzhou Haozhi. It trades about 0.02 of its potential returns per unit of risk. Guangzhou Haozhi Industrial is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,696 in Guangzhou Haozhi Industrial on September 1, 2024 and sell it today you would earn a total of 148.00 from holding Guangzhou Haozhi Industrial or generate 8.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ye Chiu Metal vs. Guangzhou Haozhi Industrial
Performance |
| Timeline |
| Ye Chiu Metal |
| Guangzhou Haozhi Ind |
Ye Chiu and Guangzhou Haozhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Guangzhou Haozhi
The main advantage of trading using opposite Ye Chiu and Guangzhou Haozhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu 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.| Ye Chiu vs. Zijin Mining Group | Ye Chiu vs. Wanhua Chemical Group | Ye Chiu vs. Baoshan Iron Steel | Ye Chiu vs. Shandong Gold Mining |
| Guangzhou Haozhi vs. New China Life | Guangzhou Haozhi vs. Ming Yang Smart | Guangzhou Haozhi vs. 159681 | Guangzhou Haozhi vs. 159005 |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |