Correlation Between Guangzhou Zhujiang and Zhongshan Public
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By analyzing existing cross correlation between Guangzhou Zhujiang Brewery and Zhongshan Public Utilities, you can compare the effects of market volatilities on Guangzhou Zhujiang and Zhongshan Public 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 Guangzhou Zhujiang with a short position of Zhongshan Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Zhujiang and Zhongshan Public.
Diversification Opportunities for Guangzhou Zhujiang and Zhongshan Public
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Zhongshan is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Zhujiang Brewery and Zhongshan Public Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongshan Public Uti and Guangzhou Zhujiang 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 Guangzhou Zhujiang Brewery are associated (or correlated) with Zhongshan Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongshan Public Uti has no effect on the direction of Guangzhou Zhujiang i.e., Guangzhou Zhujiang and Zhongshan Public go up and down completely randomly.
Pair Corralation between Guangzhou Zhujiang and Zhongshan Public
Assuming the 90 days trading horizon Guangzhou Zhujiang Brewery is expected to generate 1.24 times more return on investment than Zhongshan Public. However, Guangzhou Zhujiang is 1.24 times more volatile than Zhongshan Public Utilities. It trades about 0.32 of its potential returns per unit of risk. Zhongshan Public Utilities is currently generating about 0.26 per unit of risk. If you would invest 881.00 in Guangzhou Zhujiang Brewery on September 26, 2024 and sell it today you would earn a total of 105.00 from holding Guangzhou Zhujiang Brewery or generate 11.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Guangzhou Zhujiang Brewery vs. Zhongshan Public Utilities
Performance |
Timeline |
Guangzhou Zhujiang |
Zhongshan Public Uti |
Guangzhou Zhujiang and Zhongshan Public Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangzhou Zhujiang and Zhongshan Public
The main advantage of trading using opposite Guangzhou Zhujiang and Zhongshan Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Zhujiang position performs unexpectedly, Zhongshan Public 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 Zhongshan Public will offset losses from the drop in Zhongshan Public's long position.Guangzhou Zhujiang vs. BYD Co Ltd | Guangzhou Zhujiang vs. China Mobile Limited | Guangzhou Zhujiang vs. Agricultural Bank of | Guangzhou Zhujiang vs. Industrial and Commercial |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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