Correlation Between Guangzhou Haige and Dawning Information
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By analyzing existing cross correlation between Guangzhou Haige Communications and Dawning Information Industry, you can compare the effects of market volatilities on Guangzhou Haige and Dawning Information 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 Dawning Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Dawning Information.
Diversification Opportunities for Guangzhou Haige and Dawning Information
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Dawning is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Dawning Information Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawning Information 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 Dawning Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dawning Information has no effect on the direction of Guangzhou Haige i.e., Guangzhou Haige and Dawning Information go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Dawning Information
Assuming the 90 days trading horizon Guangzhou Haige is expected to generate 2.27 times less return on investment than Dawning Information. But when comparing it to its historical volatility, Guangzhou Haige Communications is 1.31 times less risky than Dawning Information. It trades about 0.19 of its potential returns per unit of risk. Dawning Information Industry is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 3,432 in Dawning Information Industry on September 6, 2024 and sell it today you would earn a total of 4,368 from holding Dawning Information Industry or generate 127.27% 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. Dawning Information Industry
Performance |
Timeline |
Guangzhou Haige Comm |
Dawning Information |
Guangzhou Haige and Dawning Information Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangzhou Haige and Dawning Information
The main advantage of trading using opposite Guangzhou Haige and Dawning Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige position performs unexpectedly, Dawning Information 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 Dawning Information will offset losses from the drop in Dawning Information's long position.Guangzhou Haige vs. Industrial and Commercial | Guangzhou Haige vs. Agricultural Bank of | Guangzhou Haige vs. China Construction Bank | Guangzhou Haige vs. Bank of China |
Dawning Information vs. Industrial and Commercial | Dawning Information vs. Agricultural Bank of | Dawning Information vs. China Construction Bank | Dawning Information vs. Bank of China |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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