Correlation Between GRG Banking and Zangge Holding
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By analyzing existing cross correlation between GRG Banking Equipment and Zangge Holding Co, you can compare the effects of market volatilities on GRG Banking and Zangge Holding 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 GRG Banking with a short position of Zangge Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRG Banking and Zangge Holding.
Diversification Opportunities for GRG Banking and Zangge Holding
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GRG and Zangge is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding GRG Banking Equipment and Zangge Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zangge Holding and GRG Banking 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 GRG Banking Equipment are associated (or correlated) with Zangge Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zangge Holding has no effect on the direction of GRG Banking i.e., GRG Banking and Zangge Holding go up and down completely randomly.
Pair Corralation between GRG Banking and Zangge Holding
Assuming the 90 days trading horizon GRG Banking Equipment is expected to generate 2.17 times more return on investment than Zangge Holding. However, GRG Banking is 2.17 times more volatile than Zangge Holding Co. It trades about 0.04 of its potential returns per unit of risk. Zangge Holding Co is currently generating about -0.15 per unit of risk. If you would invest 1,190 in GRG Banking Equipment on September 25, 2024 and sell it today you would earn a total of 18.00 from holding GRG Banking Equipment or generate 1.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.45% |
Values | Daily Returns |
GRG Banking Equipment vs. Zangge Holding Co
Performance |
Timeline |
GRG Banking Equipment |
Zangge Holding |
GRG Banking and Zangge Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GRG Banking and Zangge Holding
The main advantage of trading using opposite GRG Banking and Zangge Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRG Banking position performs unexpectedly, Zangge Holding 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 Zangge Holding will offset losses from the drop in Zangge Holding's long position.GRG Banking vs. Industrial and Commercial | GRG Banking vs. Agricultural Bank of | GRG Banking vs. China Construction Bank | GRG Banking vs. Bank of China |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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