Correlation Between Allied Machinery and Guangzhou Haige
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By analyzing existing cross correlation between Allied Machinery Co and Guangzhou Haige Communications, you can compare the effects of market volatilities on Allied Machinery 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 Allied Machinery with a short position of Guangzhou Haige. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allied Machinery and Guangzhou Haige.
Diversification Opportunities for Allied Machinery and Guangzhou Haige
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Allied and Guangzhou is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Allied Machinery Co 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 Allied Machinery 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 Allied Machinery Co 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 Allied Machinery i.e., Allied Machinery and Guangzhou Haige go up and down completely randomly.
Pair Corralation between Allied Machinery and Guangzhou Haige
Assuming the 90 days trading horizon Allied Machinery Co is expected to generate 2.53 times more return on investment than Guangzhou Haige. However, Allied Machinery is 2.53 times more volatile than Guangzhou Haige Communications. It trades about 0.17 of its potential returns per unit of risk. Guangzhou Haige Communications is currently generating about -0.33 per unit of risk. If you would invest 1,586 in Allied Machinery Co on October 20, 2024 and sell it today you would earn a total of 296.00 from holding Allied Machinery Co or generate 18.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allied Machinery Co vs. Guangzhou Haige Communications
Performance |
| Timeline |
| Allied Machinery |
| Guangzhou Haige Comm |
Allied Machinery and Guangzhou Haige Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allied Machinery and Guangzhou Haige
The main advantage of trading using opposite Allied Machinery and Guangzhou Haige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allied Machinery 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.| Allied Machinery vs. Sanbo Hospital Management | Allied Machinery vs. Shanghai V Test Semiconductor | Allied Machinery vs. Innovative Medical Management | Allied Machinery vs. XinJiang GuoTong Pipeline |
| Guangzhou Haige vs. Allied Machinery Co | Guangzhou Haige vs. Haima Automobile Group | Guangzhou Haige vs. Quectel Wireless Solutions | Guangzhou Haige vs. Shenzhen Zhongzhuang Construction |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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