Correlation Between Guangdong Cellwise and Huagong Tech
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By analyzing existing cross correlation between Guangdong Cellwise Microelectronics and Huagong Tech Co, you can compare the effects of market volatilities on Guangdong Cellwise and Huagong Tech 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 Cellwise with a short position of Huagong Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Cellwise and Huagong Tech.
Diversification Opportunities for Guangdong Cellwise and Huagong Tech
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and Huagong is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Cellwise Microelectr and Huagong Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huagong Tech and Guangdong Cellwise 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 Cellwise Microelectronics are associated (or correlated) with Huagong Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huagong Tech has no effect on the direction of Guangdong Cellwise i.e., Guangdong Cellwise and Huagong Tech go up and down completely randomly.
Pair Corralation between Guangdong Cellwise and Huagong Tech
Assuming the 90 days trading horizon Guangdong Cellwise is expected to generate 4.4 times less return on investment than Huagong Tech. In addition to that, Guangdong Cellwise is 1.09 times more volatile than Huagong Tech Co. It trades about 0.01 of its total potential returns per unit of risk. Huagong Tech Co is currently generating about 0.06 per unit of volatility. If you would invest 1,866 in Huagong Tech Co on October 15, 2024 and sell it today you would earn a total of 1,931 from holding Huagong Tech Co or generate 103.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Cellwise Microelectr vs. Huagong Tech Co
Performance |
| Timeline |
| Guangdong Cellwise |
| Huagong Tech |
Guangdong Cellwise and Huagong Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Cellwise and Huagong Tech
The main advantage of trading using opposite Guangdong Cellwise and Huagong Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Cellwise position performs unexpectedly, Huagong Tech 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 Huagong Tech will offset losses from the drop in Huagong Tech's long position.| Guangdong Cellwise vs. Linewell Software Co | Guangdong Cellwise vs. Lotus Health Group | Guangdong Cellwise vs. Shandong Sinoglory Health | Guangdong Cellwise vs. Fujian Boss Software |
| Huagong Tech vs. Biwin Storage Technology | Huagong Tech vs. PetroChina Co Ltd | Huagong Tech vs. Industrial and Commercial | Huagong Tech vs. China Construction Bank |
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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