Correlation Between Guilin Seamild and Zhejiang Qianjiang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guilin Seamild Foods and Zhejiang Qianjiang Motorcycle, you can compare the effects of market volatilities on Guilin Seamild and Zhejiang Qianjiang 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 Guilin Seamild with a short position of Zhejiang Qianjiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guilin Seamild and Zhejiang Qianjiang.
Diversification Opportunities for Guilin Seamild and Zhejiang Qianjiang
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Guilin and Zhejiang is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Guilin Seamild Foods and Zhejiang Qianjiang Motorcycle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Qianjiang and Guilin Seamild 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 Guilin Seamild Foods are associated (or correlated) with Zhejiang Qianjiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Qianjiang has no effect on the direction of Guilin Seamild i.e., Guilin Seamild and Zhejiang Qianjiang go up and down completely randomly.
Pair Corralation between Guilin Seamild and Zhejiang Qianjiang
Assuming the 90 days trading horizon Guilin Seamild Foods is expected to generate 0.82 times more return on investment than Zhejiang Qianjiang. However, Guilin Seamild Foods is 1.23 times less risky than Zhejiang Qianjiang. It trades about 0.02 of its potential returns per unit of risk. Zhejiang Qianjiang Motorcycle is currently generating about 0.01 per unit of risk. If you would invest 1,482 in Guilin Seamild Foods on September 26, 2024 and sell it today you would earn a total of 188.00 from holding Guilin Seamild Foods or generate 12.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Guilin Seamild Foods vs. Zhejiang Qianjiang Motorcycle
Performance |
Timeline |
Guilin Seamild Foods |
Zhejiang Qianjiang |
Guilin Seamild and Zhejiang Qianjiang Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guilin Seamild and Zhejiang Qianjiang
The main advantage of trading using opposite Guilin Seamild and Zhejiang Qianjiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guilin Seamild position performs unexpectedly, Zhejiang Qianjiang 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 Zhejiang Qianjiang will offset losses from the drop in Zhejiang Qianjiang's long position.Guilin Seamild vs. Ming Yang Smart | Guilin Seamild vs. 159681 | Guilin Seamild vs. 159005 | Guilin Seamild vs. Loctek Ergonomic Technology |
Zhejiang Qianjiang vs. Guilin Seamild Foods | Zhejiang Qianjiang vs. Zhongyin Babi Food | Zhejiang Qianjiang vs. Wasu Media Holding | Zhejiang Qianjiang vs. Eastroc Beverage Group |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Commodity Directory Find actively traded commodities issued by global exchanges |