Correlation Between Guangzhou Haige and Sinosteel Luonai
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By analyzing existing cross correlation between Guangzhou Haige Communications and Sinosteel Luonai Materials, you can compare the effects of market volatilities on Guangzhou Haige and Sinosteel Luonai 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 Sinosteel Luonai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Sinosteel Luonai.
Diversification Opportunities for Guangzhou Haige and Sinosteel Luonai
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Sinosteel is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Sinosteel Luonai Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinosteel Luonai Mat 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 Sinosteel Luonai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinosteel Luonai Mat has no effect on the direction of Guangzhou Haige i.e., Guangzhou Haige and Sinosteel Luonai go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Sinosteel Luonai
Assuming the 90 days trading horizon Guangzhou Haige Communications is expected to generate 1.09 times more return on investment than Sinosteel Luonai. However, Guangzhou Haige is 1.09 times more volatile than Sinosteel Luonai Materials. It trades about 0.0 of its potential returns per unit of risk. Sinosteel Luonai Materials is currently generating about -0.03 per unit of risk. If you would invest 1,172 in Guangzhou Haige Communications on October 5, 2024 and sell it today you would lose (155.00) from holding Guangzhou Haige Communications or give up 13.23% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Guangzhou Haige Communications vs. Sinosteel Luonai Materials
Performance |
Timeline |
Guangzhou Haige Comm |
Sinosteel Luonai Mat |
Guangzhou Haige and Sinosteel Luonai Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangzhou Haige and Sinosteel Luonai
The main advantage of trading using opposite Guangzhou Haige and Sinosteel Luonai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige position performs unexpectedly, Sinosteel Luonai 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 Sinosteel Luonai will offset losses from the drop in Sinosteel Luonai's long position.Guangzhou Haige vs. Gansu Jiu Steel | Guangzhou Haige vs. Changzhou Almaden Co | Guangzhou Haige vs. Aba Chemicals Corp | Guangzhou Haige vs. Hwabao WP CSI |
Sinosteel Luonai vs. Zijin Mining Group | Sinosteel Luonai vs. Wanhua Chemical Group | Sinosteel Luonai vs. Baoshan Iron Steel | Sinosteel Luonai vs. Rongsheng Petrochemical Co |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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