Correlation Between Henan Shuanghui and Guangzhou Haige
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By analyzing existing cross correlation between Henan Shuanghui Investment and Guangzhou Haige Communications, you can compare the effects of market volatilities on Henan Shuanghui 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 Henan Shuanghui with a short position of Guangzhou Haige. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and Guangzhou Haige.
Diversification Opportunities for Henan Shuanghui and Guangzhou Haige
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Henan and Guangzhou is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment 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 Henan Shuanghui 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 Henan Shuanghui Investment 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 Henan Shuanghui i.e., Henan Shuanghui and Guangzhou Haige go up and down completely randomly.
Pair Corralation between Henan Shuanghui and Guangzhou Haige
Assuming the 90 days trading horizon Henan Shuanghui is expected to generate 4.93 times less return on investment than Guangzhou Haige. But when comparing it to its historical volatility, Henan Shuanghui Investment is 2.06 times less risky than Guangzhou Haige. It trades about 0.05 of its potential returns per unit of risk. Guangzhou Haige Communications is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 916.00 in Guangzhou Haige Communications on September 26, 2024 and sell it today you would earn a total of 237.00 from holding Guangzhou Haige Communications or generate 25.87% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Henan Shuanghui Investment vs. Guangzhou Haige Communications
Performance |
Timeline |
Henan Shuanghui Inve |
Guangzhou Haige Comm |
Henan Shuanghui and Guangzhou Haige Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Henan Shuanghui and Guangzhou Haige
The main advantage of trading using opposite Henan Shuanghui and Guangzhou Haige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui 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.Henan Shuanghui vs. Guangzhou Haige Communications | Henan Shuanghui vs. Metallurgical of | Henan Shuanghui vs. Guangdong Jingyi Metal | Henan Shuanghui vs. Guangdong Shenglu Telecommunication |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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