Correlation Between Songz Automobile and Guangzhou Jointas
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By analyzing existing cross correlation between Songz Automobile Air and Guangzhou Jointas Chemical, you can compare the effects of market volatilities on Songz Automobile and Guangzhou Jointas 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 Songz Automobile with a short position of Guangzhou Jointas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Songz Automobile and Guangzhou Jointas.
Diversification Opportunities for Songz Automobile and Guangzhou Jointas
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Songz and Guangzhou is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Songz Automobile Air and Guangzhou Jointas Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jointas and Songz Automobile 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 Songz Automobile Air are associated (or correlated) with Guangzhou Jointas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jointas has no effect on the direction of Songz Automobile i.e., Songz Automobile and Guangzhou Jointas go up and down completely randomly.
Pair Corralation between Songz Automobile and Guangzhou Jointas
Assuming the 90 days trading horizon Songz Automobile is expected to generate 1.62 times less return on investment than Guangzhou Jointas. In addition to that, Songz Automobile is 1.05 times more volatile than Guangzhou Jointas Chemical. It trades about 0.08 of its total potential returns per unit of risk. Guangzhou Jointas Chemical is currently generating about 0.13 per unit of volatility. If you would invest 490.00 in Guangzhou Jointas Chemical on December 25, 2024 and sell it today you would earn a total of 70.00 from holding Guangzhou Jointas Chemical or generate 14.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Songz Automobile Air vs. Guangzhou Jointas Chemical
Performance |
Timeline |
Songz Automobile Air |
Guangzhou Jointas |
Songz Automobile and Guangzhou Jointas Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Songz Automobile and Guangzhou Jointas
The main advantage of trading using opposite Songz Automobile and Guangzhou Jointas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Songz Automobile position performs unexpectedly, Guangzhou Jointas 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 Jointas will offset losses from the drop in Guangzhou Jointas' long position.Songz Automobile vs. Zhejiang Construction Investment | Songz Automobile vs. Double Medical Technology | Songz Automobile vs. Medprin Regenerative Medical | Songz Automobile vs. ANHUI HONGYU WUZHOU |
Guangzhou Jointas vs. Hunan TV Broadcast | Guangzhou Jointas vs. JCHX Mining Management | Guangzhou Jointas vs. XiAn Dagang Road | Guangzhou Jointas vs. Sanbo Hospital Management |
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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