Correlation Between Tibet Huayu and Guangzhou Haozhi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tibet Huayu Mining and Guangzhou Haozhi Industrial, you can compare the effects of market volatilities on Tibet Huayu and Guangzhou Haozhi 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 Tibet Huayu with a short position of Guangzhou Haozhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tibet Huayu and Guangzhou Haozhi.
Diversification Opportunities for Tibet Huayu and Guangzhou Haozhi
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tibet and Guangzhou is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Tibet Huayu Mining and Guangzhou Haozhi Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haozhi Ind and Tibet Huayu 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 Tibet Huayu Mining are associated (or correlated) with Guangzhou Haozhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haozhi Ind has no effect on the direction of Tibet Huayu i.e., Tibet Huayu and Guangzhou Haozhi go up and down completely randomly.
Pair Corralation between Tibet Huayu and Guangzhou Haozhi
Assuming the 90 days trading horizon Tibet Huayu Mining is expected to under-perform the Guangzhou Haozhi. But the stock apears to be less risky and, when comparing its historical volatility, Tibet Huayu Mining is 1.35 times less risky than Guangzhou Haozhi. The stock trades about -0.02 of its potential returns per unit of risk. The Guangzhou Haozhi Industrial is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,744 in Guangzhou Haozhi Industrial on October 4, 2024 and sell it today you would earn a total of 139.00 from holding Guangzhou Haozhi Industrial or generate 7.97% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Tibet Huayu Mining vs. Guangzhou Haozhi Industrial
Performance |
Timeline |
Tibet Huayu Mining |
Guangzhou Haozhi Ind |
Tibet Huayu and Guangzhou Haozhi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tibet Huayu and Guangzhou Haozhi
The main advantage of trading using opposite Tibet Huayu and Guangzhou Haozhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tibet Huayu position performs unexpectedly, Guangzhou Haozhi 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 Haozhi will offset losses from the drop in Guangzhou Haozhi's long position.Tibet Huayu vs. Orinko Advanced Plastics | Tibet Huayu vs. Advanced Technology Materials | Tibet Huayu vs. Malion New Materials | Tibet Huayu vs. Shandong Polymer Biochemicals |
Guangzhou Haozhi vs. Kweichow Moutai Co | Guangzhou Haozhi vs. NAURA Technology Group | Guangzhou Haozhi vs. Zhejiang Orient Gene | Guangzhou Haozhi vs. APT Medical |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |