Correlation Between Guangdong Shenglu and Dawning Information
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Dawning Information Industry, you can compare the effects of market volatilities on Guangdong Shenglu and Dawning Information 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 Dawning Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Dawning Information.
Diversification Opportunities for Guangdong Shenglu and Dawning Information
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Dawning is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and Dawning Information Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawning Information 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 Dawning Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dawning Information has no effect on the direction of Guangdong Shenglu i.e., Guangdong Shenglu and Dawning Information go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Dawning Information
Assuming the 90 days trading horizon Guangdong Shenglu is expected to generate 51.03 times less return on investment than Dawning Information. But when comparing it to its historical volatility, Guangdong Shenglu Telecommunication is 1.52 times less risky than Dawning Information. It trades about 0.01 of its potential returns per unit of risk. Dawning Information Industry is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 5,442 in Dawning Information Industry on September 25, 2024 and sell it today you would earn a total of 2,236 from holding Dawning Information Industry or generate 41.09% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Dawning Information Industry
Performance |
Timeline |
Guangdong Shenglu |
Dawning Information |
Guangdong Shenglu and Dawning Information Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangdong Shenglu and Dawning Information
The main advantage of trading using opposite Guangdong Shenglu and Dawning Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu position performs unexpectedly, Dawning Information 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 Dawning Information will offset losses from the drop in Dawning Information's long position.Guangdong Shenglu vs. Industrial and Commercial | Guangdong Shenglu vs. Agricultural Bank of | Guangdong Shenglu vs. China Construction Bank | Guangdong Shenglu vs. Bank of China |
Dawning Information vs. Industrial and Commercial | Dawning Information vs. Agricultural Bank of | Dawning Information vs. China Construction Bank | Dawning Information vs. Bank of China |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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