Correlation Between Changzhou Almaden and Guangzhou Haige
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By analyzing existing cross correlation between Changzhou Almaden Co and Guangzhou Haige Communications, you can compare the effects of market volatilities on Changzhou Almaden 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 Changzhou Almaden with a short position of Guangzhou Haige. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changzhou Almaden and Guangzhou Haige.
Diversification Opportunities for Changzhou Almaden and Guangzhou Haige
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Changzhou and Guangzhou is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Changzhou Almaden Co 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 Changzhou Almaden 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 Changzhou Almaden Co 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 Changzhou Almaden i.e., Changzhou Almaden and Guangzhou Haige go up and down completely randomly.
Pair Corralation between Changzhou Almaden and Guangzhou Haige
Assuming the 90 days trading horizon Changzhou Almaden Co is expected to under-perform the Guangzhou Haige. But the stock apears to be less risky and, when comparing its historical volatility, Changzhou Almaden Co is 1.18 times less risky than Guangzhou Haige. The stock trades about -0.13 of its potential returns per unit of risk. The Guangzhou Haige Communications is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 1,140 in Guangzhou Haige Communications on October 7, 2024 and sell it today you would lose (123.00) from holding Guangzhou Haige Communications or give up 10.79% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Changzhou Almaden Co vs. Guangzhou Haige Communications
Performance |
Timeline |
Changzhou Almaden |
Guangzhou Haige Comm |
Changzhou Almaden and Guangzhou Haige Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Changzhou Almaden and Guangzhou Haige
The main advantage of trading using opposite Changzhou Almaden and Guangzhou Haige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changzhou Almaden 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.Changzhou Almaden vs. Shandong Polymer Biochemicals | Changzhou Almaden vs. Shenzhen Noposion Agrochemicals | Changzhou Almaden vs. Do Fluoride Chemicals Co | Changzhou Almaden vs. Liuzhou Chemical Industry |
Guangzhou Haige vs. Kweichow Moutai Co | Guangzhou Haige vs. Contemporary Amperex Technology | Guangzhou Haige vs. G bits Network Technology | Guangzhou Haige vs. BYD Co Ltd |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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