Correlation Between HUAQIN TECHNOLOGY and Guangdong Liantai
Specify exactly 2 symbols:
By analyzing existing cross correlation between HUAQIN TECHNOLOGY LTD and Guangdong Liantai Environmental, you can compare the effects of market volatilities on HUAQIN TECHNOLOGY and Guangdong Liantai 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 HUAQIN TECHNOLOGY with a short position of Guangdong Liantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUAQIN TECHNOLOGY and Guangdong Liantai.
Diversification Opportunities for HUAQIN TECHNOLOGY and Guangdong Liantai
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between HUAQIN and Guangdong is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding HUAQIN TECHNOLOGY LTD and Guangdong Liantai Environmenta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Liantai and HUAQIN TECHNOLOGY 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 HUAQIN TECHNOLOGY LTD are associated (or correlated) with Guangdong Liantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Liantai has no effect on the direction of HUAQIN TECHNOLOGY i.e., HUAQIN TECHNOLOGY and Guangdong Liantai go up and down completely randomly.
Pair Corralation between HUAQIN TECHNOLOGY and Guangdong Liantai
Assuming the 90 days trading horizon HUAQIN TECHNOLOGY LTD is expected to generate 1.19 times more return on investment than Guangdong Liantai. However, HUAQIN TECHNOLOGY is 1.19 times more volatile than Guangdong Liantai Environmental. It trades about 0.05 of its potential returns per unit of risk. Guangdong Liantai Environmental is currently generating about -0.02 per unit of risk. If you would invest 4,908 in HUAQIN TECHNOLOGY LTD on September 4, 2024 and sell it today you would earn a total of 1,682 from holding HUAQIN TECHNOLOGY LTD or generate 34.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUAQIN TECHNOLOGY LTD vs. Guangdong Liantai Environmenta
Performance |
| Timeline |
| HUAQIN TECHNOLOGY LTD |
| Guangdong Liantai |
HUAQIN TECHNOLOGY and Guangdong Liantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUAQIN TECHNOLOGY and Guangdong Liantai
The main advantage of trading using opposite HUAQIN TECHNOLOGY and Guangdong Liantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUAQIN TECHNOLOGY position performs unexpectedly, Guangdong Liantai 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 Guangdong Liantai will offset losses from the drop in Guangdong Liantai's long position.| HUAQIN TECHNOLOGY vs. Industrial and Commercial | HUAQIN TECHNOLOGY vs. Kweichow Moutai Co | HUAQIN TECHNOLOGY vs. Agricultural Bank of | HUAQIN TECHNOLOGY vs. China Mobile Limited |
| Guangdong Liantai vs. Jinsanjiang Silicon Material | Guangdong Liantai vs. Jiangsu Jinling Sports | Guangdong Liantai vs. Sichuan Fulin Transportation | Guangdong Liantai vs. Hubeiyichang Transportation Group |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |