Correlation Between Industrial and Guangzhou Hangxin
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By analyzing existing cross correlation between Industrial and Commercial and Guangzhou Hangxin Aviation, you can compare the effects of market volatilities on Industrial and Guangzhou Hangxin 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 Industrial with a short position of Guangzhou Hangxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Guangzhou Hangxin.
Diversification Opportunities for Industrial and Guangzhou Hangxin
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Industrial and Guangzhou is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Guangzhou Hangxin Aviation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Hangxin and Industrial 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 Industrial and Commercial are associated (or correlated) with Guangzhou Hangxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Hangxin has no effect on the direction of Industrial i.e., Industrial and Guangzhou Hangxin go up and down completely randomly.
Pair Corralation between Industrial and Guangzhou Hangxin
Assuming the 90 days trading horizon Industrial is expected to generate 1.01 times less return on investment than Guangzhou Hangxin. But when comparing it to its historical volatility, Industrial and Commercial is 3.26 times less risky than Guangzhou Hangxin. It trades about 0.09 of its potential returns per unit of risk. Guangzhou Hangxin Aviation is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,312 in Guangzhou Hangxin Aviation on October 22, 2024 and sell it today you would earn a total of 244.00 from holding Guangzhou Hangxin Aviation or generate 18.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Guangzhou Hangxin Aviation
Performance |
| Timeline |
| Industrial and Commercial |
| Guangzhou Hangxin |
Industrial and Guangzhou Hangxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Guangzhou Hangxin
The main advantage of trading using opposite Industrial and Guangzhou Hangxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Guangzhou Hangxin 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 Hangxin will offset losses from the drop in Guangzhou Hangxin's long position.| Industrial vs. Luyin Investment Group | Industrial vs. Peoples Insurance of | Industrial vs. Cultural Investment Holdings | Industrial vs. Juneyao Airlines |
| Guangzhou Hangxin vs. Shenzhen MYS Environmental | Guangzhou Hangxin vs. AVIC Fund Management | Guangzhou Hangxin vs. Haoxiangni Jujube Co | Guangzhou Hangxin vs. Shenzhen Bingchuan Network |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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