Correlation Between Guangzhou Haige and XinJiang GuoTong
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By analyzing existing cross correlation between Guangzhou Haige Communications and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on Guangzhou Haige and XinJiang GuoTong 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 Guangzhou Haige with a short position of XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and XinJiang GuoTong.
Diversification Opportunities for Guangzhou Haige and XinJiang GuoTong
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and XinJiang is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and XinJiang GuoTong Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XinJiang GuoTong Pipeline and Guangzhou Haige 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 Guangzhou Haige Communications are associated (or correlated) with XinJiang GuoTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XinJiang GuoTong Pipeline has no effect on the direction of Guangzhou Haige i.e., Guangzhou Haige and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between Guangzhou Haige and XinJiang GuoTong
Assuming the 90 days trading horizon Guangzhou Haige is expected to generate 1.68 times less return on investment than XinJiang GuoTong. In addition to that, Guangzhou Haige is 1.36 times more volatile than XinJiang GuoTong Pipeline. It trades about 0.04 of its total potential returns per unit of risk. XinJiang GuoTong Pipeline is currently generating about 0.08 per unit of volatility. If you would invest 889.00 in XinJiang GuoTong Pipeline on September 6, 2024 and sell it today you would earn a total of 36.00 from holding XinJiang GuoTong Pipeline or generate 4.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Guangzhou Haige Communications vs. XinJiang GuoTong Pipeline
Performance |
Timeline |
Guangzhou Haige Comm |
XinJiang GuoTong Pipeline |
Guangzhou Haige and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangzhou Haige and XinJiang GuoTong
The main advantage of trading using opposite Guangzhou Haige and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige position performs unexpectedly, XinJiang GuoTong 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 XinJiang GuoTong will offset losses from the drop in XinJiang GuoTong's long position.Guangzhou Haige vs. Industrial and Commercial | Guangzhou Haige vs. China Construction Bank | Guangzhou Haige vs. Bank of China | Guangzhou Haige vs. Agricultural Bank of |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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