Correlation Between Guangzhou Hongli and Guangdong Silvere
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By analyzing existing cross correlation between Guangzhou Hongli Opto and Guangdong Silvere Sci, you can compare the effects of market volatilities on Guangzhou Hongli and Guangdong Silvere 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 Hongli with a short position of Guangdong Silvere. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Hongli and Guangdong Silvere.
Diversification Opportunities for Guangzhou Hongli and Guangdong Silvere
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Guangdong is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Hongli Opto and Guangdong Silvere Sci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Silvere Sci and Guangzhou Hongli 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 Hongli Opto are associated (or correlated) with Guangdong Silvere. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Silvere Sci has no effect on the direction of Guangzhou Hongli i.e., Guangzhou Hongli and Guangdong Silvere go up and down completely randomly.
Pair Corralation between Guangzhou Hongli and Guangdong Silvere
Assuming the 90 days trading horizon Guangzhou Hongli Opto is expected to generate 0.92 times more return on investment than Guangdong Silvere. However, Guangzhou Hongli Opto is 1.08 times less risky than Guangdong Silvere. It trades about -0.05 of its potential returns per unit of risk. Guangdong Silvere Sci is currently generating about -0.11 per unit of risk. If you would invest 746.00 in Guangzhou Hongli Opto on October 6, 2024 and sell it today you would lose (56.00) from holding Guangzhou Hongli Opto or give up 7.51% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Guangzhou Hongli Opto vs. Guangdong Silvere Sci
Performance |
Timeline |
Guangzhou Hongli Opto |
Guangdong Silvere Sci |
Guangzhou Hongli and Guangdong Silvere Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangzhou Hongli and Guangdong Silvere
The main advantage of trading using opposite Guangzhou Hongli and Guangdong Silvere positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Hongli position performs unexpectedly, Guangdong Silvere 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 Guangdong Silvere will offset losses from the drop in Guangdong Silvere's long position.Guangzhou Hongli vs. Beijing Kingsoft Office | Guangzhou Hongli vs. Porton Fine Chemicals | Guangzhou Hongli vs. Dalian Thermal Power | Guangzhou Hongli vs. Queclink Wireless Solutions |
Guangdong Silvere vs. Zijin Mining Group | Guangdong Silvere vs. Wanhua Chemical Group | Guangdong Silvere vs. Baoshan Iron Steel | Guangdong Silvere vs. Shandong Gold Mining |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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