Correlation Between Suzhou Weizhixiang and Guangzhou Haige
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By analyzing existing cross correlation between Suzhou Weizhixiang Food and Guangzhou Haige Communications, you can compare the effects of market volatilities on Suzhou Weizhixiang 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 Suzhou Weizhixiang with a short position of Guangzhou Haige. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Weizhixiang and Guangzhou Haige.
Diversification Opportunities for Suzhou Weizhixiang and Guangzhou Haige
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Suzhou and Guangzhou is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Weizhixiang 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 Suzhou Weizhixiang 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 Suzhou Weizhixiang 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 Suzhou Weizhixiang i.e., Suzhou Weizhixiang and Guangzhou Haige go up and down completely randomly.
Pair Corralation between Suzhou Weizhixiang and Guangzhou Haige
Assuming the 90 days trading horizon Suzhou Weizhixiang Food is expected to under-perform the Guangzhou Haige. In addition to that, Suzhou Weizhixiang is 1.18 times more volatile than Guangzhou Haige Communications. It trades about -0.2 of its total potential returns per unit of risk. Guangzhou Haige Communications is currently generating about -0.15 per unit of volatility. If you would invest 1,130 in Guangzhou Haige Communications on October 28, 2024 and sell it today you would lose (83.00) from holding Guangzhou Haige Communications or give up 7.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Weizhixiang Food vs. Guangzhou Haige Communications
Performance |
| Timeline |
| Suzhou Weizhixiang Food |
| Guangzhou Haige Comm |
Suzhou Weizhixiang and Guangzhou Haige Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Weizhixiang and Guangzhou Haige
The main advantage of trading using opposite Suzhou Weizhixiang and Guangzhou Haige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Weizhixiang 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.| Suzhou Weizhixiang vs. Eastern Air Logistics | Suzhou Weizhixiang vs. Hubei Xingfa Chemicals | Suzhou Weizhixiang vs. Keda Clean Energy | Suzhou Weizhixiang vs. Aba Chemicals Corp |
| Guangzhou Haige vs. Ningbo Fujia Industrial | Guangzhou Haige vs. Xizi Clean Energy | Guangzhou Haige vs. Gem Year Industrial Co | Guangzhou Haige vs. Runjian Communication Co |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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