Correlation Between Yantai North and Guangzhou Haige
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By analyzing existing cross correlation between Yantai North Andre and Guangzhou Haige Communications, you can compare the effects of market volatilities on Yantai North 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 Yantai North with a short position of Guangzhou Haige. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yantai North and Guangzhou Haige.
Diversification Opportunities for Yantai North and Guangzhou Haige
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yantai and Guangzhou is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Yantai North Andre 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 Yantai North 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 Yantai North Andre 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 Yantai North i.e., Yantai North and Guangzhou Haige go up and down completely randomly.
Pair Corralation between Yantai North and Guangzhou Haige
Assuming the 90 days trading horizon Yantai North Andre is expected to generate 0.77 times more return on investment than Guangzhou Haige. However, Yantai North Andre is 1.29 times less risky than Guangzhou Haige. It trades about 0.3 of its potential returns per unit of risk. Guangzhou Haige Communications is currently generating about 0.17 per unit of risk. If you would invest 2,417 in Yantai North Andre on September 1, 2024 and sell it today you would earn a total of 475.00 from holding Yantai North Andre or generate 19.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yantai North Andre vs. Guangzhou Haige Communications
Performance |
| Timeline |
| Yantai North Andre |
| Guangzhou Haige Comm |
Yantai North and Guangzhou Haige Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yantai North and Guangzhou Haige
The main advantage of trading using opposite Yantai North and Guangzhou Haige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yantai North 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.| Yantai North vs. Guangzhou Haige Communications | Yantai North vs. Haima Automobile Group | Yantai North vs. Tongyu Communication | Yantai North vs. Xinjiang Communications Construction |
| Guangzhou Haige vs. Industrial and Commercial | Guangzhou Haige vs. Kweichow Moutai Co | Guangzhou Haige vs. Agricultural Bank of | Guangzhou Haige 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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