Correlation Between Sinotrans and Guangzhou Haige
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By analyzing existing cross correlation between Sinotrans Ltd Class and Guangzhou Haige Communications, you can compare the effects of market volatilities on Sinotrans 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 Sinotrans with a short position of Guangzhou Haige. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinotrans and Guangzhou Haige.
Diversification Opportunities for Sinotrans and Guangzhou Haige
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sinotrans and Guangzhou is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Sinotrans Ltd Class 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 Sinotrans 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 Sinotrans Ltd Class 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 Sinotrans i.e., Sinotrans and Guangzhou Haige go up and down completely randomly.
Pair Corralation between Sinotrans and Guangzhou Haige
Assuming the 90 days trading horizon Sinotrans Ltd Class is expected to generate 0.54 times more return on investment than Guangzhou Haige. However, Sinotrans Ltd Class is 1.85 times less risky than Guangzhou Haige. It trades about -0.17 of its potential returns per unit of risk. Guangzhou Haige Communications is currently generating about -0.43 per unit of risk. If you would invest 529.00 in Sinotrans Ltd Class on October 16, 2024 and sell it today you would lose (20.00) from holding Sinotrans Ltd Class or give up 3.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinotrans Ltd Class vs. Guangzhou Haige Communications
Performance |
| Timeline |
| Sinotrans Class |
| Guangzhou Haige Comm |
Sinotrans and Guangzhou Haige Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinotrans and Guangzhou Haige
The main advantage of trading using opposite Sinotrans and Guangzhou Haige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinotrans 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.| Sinotrans vs. Shandong Sinoglory Health | Sinotrans vs. China Reform Health | Sinotrans vs. Xiangyang Automobile Bearing | Sinotrans vs. Healthcare Co |
| Guangzhou Haige vs. Shuhua Sports Co | Guangzhou Haige vs. Heilongjiang Transport Development | Guangzhou Haige vs. Eastern Communications Co | Guangzhou Haige vs. Sichuan Fulin Transportation |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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