Correlation Between Guangdong Shenglu and China Publishing
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and China Publishing Media, you can compare the effects of market volatilities on Guangdong Shenglu and China Publishing 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 Guangdong Shenglu with a short position of China Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and China Publishing.
Diversification Opportunities for Guangdong Shenglu and China Publishing
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and China is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and China Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Publishing Media and Guangdong Shenglu 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 Guangdong Shenglu Telecommunication are associated (or correlated) with China Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Publishing Media has no effect on the direction of Guangdong Shenglu i.e., Guangdong Shenglu and China Publishing go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and China Publishing
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to under-perform the China Publishing. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Shenglu Telecommunication is 1.19 times less risky than China Publishing. The stock trades about -0.02 of its potential returns per unit of risk. The China Publishing Media is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 495.00 in China Publishing Media on September 26, 2024 and sell it today you would earn a total of 268.00 from holding China Publishing Media or generate 54.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. China Publishing Media
Performance |
Timeline |
Guangdong Shenglu |
China Publishing Media |
Guangdong Shenglu and China Publishing Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangdong Shenglu and China Publishing
The main advantage of trading using opposite Guangdong Shenglu and China Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu position performs unexpectedly, China Publishing 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 China Publishing will offset losses from the drop in China Publishing's long position.Guangdong Shenglu vs. Dongfeng Automobile Co | Guangdong Shenglu vs. China Mobile Limited | Guangdong Shenglu vs. Railway Signal Communication | Guangdong Shenglu vs. Dareway Software Co |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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