Correlation Between Sichuan Teway and Guangzhou Haige
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By analyzing existing cross correlation between Sichuan Teway Food and Guangzhou Haige Communications, you can compare the effects of market volatilities on Sichuan Teway 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 Sichuan Teway with a short position of Guangzhou Haige. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Teway and Guangzhou Haige.
Diversification Opportunities for Sichuan Teway and Guangzhou Haige
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sichuan and Guangzhou is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Teway Food 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 Sichuan Teway 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 Sichuan Teway Food 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 Sichuan Teway i.e., Sichuan Teway and Guangzhou Haige go up and down completely randomly.
Pair Corralation between Sichuan Teway and Guangzhou Haige
Assuming the 90 days trading horizon Sichuan Teway Food is expected to under-perform the Guangzhou Haige. But the stock apears to be less risky and, when comparing its historical volatility, Sichuan Teway Food is 1.28 times less risky than Guangzhou Haige. The stock trades about 0.0 of its potential returns per unit of risk. The Guangzhou Haige Communications is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,120 in Guangzhou Haige Communications on August 31, 2024 and sell it today you would earn a total of 110.00 from holding Guangzhou Haige Communications or generate 9.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Teway Food vs. Guangzhou Haige Communications
Performance |
| Timeline |
| Sichuan Teway Food |
| Guangzhou Haige Comm |
Sichuan Teway and Guangzhou Haige Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Teway and Guangzhou Haige
The main advantage of trading using opposite Sichuan Teway and Guangzhou Haige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Teway 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.| Sichuan Teway vs. Lutian Machinery Co | Sichuan Teway vs. PetroChina Co Ltd | Sichuan Teway vs. Bank of China | Sichuan Teway vs. Gansu Jiu Steel |
| Guangzhou Haige vs. Kweichow Moutai Co | Guangzhou Haige vs. NAURA Technology Group | Guangzhou Haige vs. APT Medical | Guangzhou Haige vs. Contemporary Amperex Technology |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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