Correlation Between Guangzhou Zhujiang and King Strong
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By analyzing existing cross correlation between Guangzhou Zhujiang Brewery and King Strong New Material, you can compare the effects of market volatilities on Guangzhou Zhujiang and King Strong 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 King Strong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Zhujiang and King Strong.
Diversification Opportunities for Guangzhou Zhujiang and King Strong
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and King is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Zhujiang Brewery and King Strong New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on King Strong New 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 King Strong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of King Strong New has no effect on the direction of Guangzhou Zhujiang i.e., Guangzhou Zhujiang and King Strong go up and down completely randomly.
Pair Corralation between Guangzhou Zhujiang and King Strong
Assuming the 90 days trading horizon Guangzhou Zhujiang Brewery is expected to generate 0.54 times more return on investment than King Strong. However, Guangzhou Zhujiang Brewery is 1.86 times less risky than King Strong. It trades about 0.32 of its potential returns per unit of risk. King Strong New Material is currently generating about 0.04 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 | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Guangzhou Zhujiang Brewery vs. King Strong New Material
Performance |
Timeline |
Guangzhou Zhujiang |
King Strong New |
Guangzhou Zhujiang and King Strong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangzhou Zhujiang and King Strong
The main advantage of trading using opposite Guangzhou Zhujiang and King Strong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Zhujiang position performs unexpectedly, King Strong 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 King Strong will offset losses from the drop in King Strong'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 |
King Strong vs. Bank of China | King Strong vs. Kweichow Moutai Co | King Strong vs. PetroChina Co Ltd | King Strong vs. Bank of Communications |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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