Correlation Between Gotion High and Shenyang Blue
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By analyzing existing cross correlation between Gotion High tech and Shenyang Blue Silver, you can compare the effects of market volatilities on Gotion High and Shenyang Blue 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 Gotion High with a short position of Shenyang Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gotion High and Shenyang Blue.
Diversification Opportunities for Gotion High and Shenyang Blue
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gotion and Shenyang is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Gotion High tech and Shenyang Blue Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Blue Silver and Gotion High 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 Gotion High tech are associated (or correlated) with Shenyang Blue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Blue Silver has no effect on the direction of Gotion High i.e., Gotion High and Shenyang Blue go up and down completely randomly.
Pair Corralation between Gotion High and Shenyang Blue
Assuming the 90 days trading horizon Gotion High is expected to generate 19.01 times less return on investment than Shenyang Blue. But when comparing it to its historical volatility, Gotion High tech is 1.9 times less risky than Shenyang Blue. It trades about 0.01 of its potential returns per unit of risk. Shenyang Blue Silver is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,527 in Shenyang Blue Silver on October 3, 2024 and sell it today you would earn a total of 745.00 from holding Shenyang Blue Silver or generate 48.79% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Gotion High tech vs. Shenyang Blue Silver
Performance |
Timeline |
Gotion High tech |
Shenyang Blue Silver |
Gotion High and Shenyang Blue Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gotion High and Shenyang Blue
The main advantage of trading using opposite Gotion High and Shenyang Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gotion High position performs unexpectedly, Shenyang Blue 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 Shenyang Blue will offset losses from the drop in Shenyang Blue's long position.Gotion High vs. Industrial and Commercial | Gotion High vs. Agricultural Bank of | Gotion High vs. China Construction Bank | Gotion High vs. Bank of China |
Shenyang Blue vs. Kweichow Moutai Co | Shenyang Blue vs. NAURA Technology Group | Shenyang Blue vs. Zhejiang Orient Gene | Shenyang Blue 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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