Correlation Between Guangdong Liantai and HUAQIN TECHNOLOGY
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Liantai Environmental and HUAQIN TECHNOLOGY LTD, you can compare the effects of market volatilities on Guangdong Liantai and HUAQIN TECHNOLOGY 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 Guangdong Liantai with a short position of HUAQIN TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Liantai and HUAQIN TECHNOLOGY.
Diversification Opportunities for Guangdong Liantai and HUAQIN TECHNOLOGY
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and HUAQIN is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Liantai Environmenta and HUAQIN TECHNOLOGY LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUAQIN TECHNOLOGY LTD and Guangdong Liantai 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 Guangdong Liantai Environmental are associated (or correlated) with HUAQIN TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUAQIN TECHNOLOGY LTD has no effect on the direction of Guangdong Liantai i.e., Guangdong Liantai and HUAQIN TECHNOLOGY go up and down completely randomly.
Pair Corralation between Guangdong Liantai and HUAQIN TECHNOLOGY
Assuming the 90 days trading horizon Guangdong Liantai Environmental is expected to under-perform the HUAQIN TECHNOLOGY. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Liantai Environmental is 1.19 times less risky than HUAQIN TECHNOLOGY. The stock trades about -0.02 of its potential returns per unit of risk. The HUAQIN TECHNOLOGY LTD is currently generating about 0.05 of returns per unit of risk over similar time horizon. 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 |
Guangdong Liantai Environmenta vs. HUAQIN TECHNOLOGY LTD
Performance |
| Timeline |
| Guangdong Liantai |
| HUAQIN TECHNOLOGY LTD |
Guangdong Liantai and HUAQIN TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Liantai and HUAQIN TECHNOLOGY
The main advantage of trading using opposite Guangdong Liantai and HUAQIN TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Liantai position performs unexpectedly, HUAQIN TECHNOLOGY 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 HUAQIN TECHNOLOGY will offset losses from the drop in HUAQIN TECHNOLOGY's long position.| Guangdong Liantai vs. Jinsanjiang Silicon Material | Guangdong Liantai vs. Jiangsu Jinling Sports | Guangdong Liantai vs. Sichuan Fulin Transportation | Guangdong Liantai vs. Hubeiyichang Transportation Group |
| HUAQIN TECHNOLOGY vs. Industrial and Commercial | HUAQIN TECHNOLOGY vs. Kweichow Moutai Co | HUAQIN TECHNOLOGY vs. Agricultural Bank of | HUAQIN TECHNOLOGY vs. China Mobile Limited |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| 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 | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |