Correlation Between Guangdong Wens and Ye Chiu
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By analyzing existing cross correlation between Guangdong Wens Foodstuff and Ye Chiu Metal, you can compare the effects of market volatilities on Guangdong Wens and Ye Chiu 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 Guangdong Wens with a short position of Ye Chiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Wens and Ye Chiu.
Diversification Opportunities for Guangdong Wens and Ye Chiu
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and 601388 is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Wens Foodstuff and Ye Chiu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ye Chiu Metal and Guangdong Wens 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 Guangdong Wens Foodstuff are associated (or correlated) with Ye Chiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ye Chiu Metal has no effect on the direction of Guangdong Wens i.e., Guangdong Wens and Ye Chiu go up and down completely randomly.
Pair Corralation between Guangdong Wens and Ye Chiu
Assuming the 90 days trading horizon Guangdong Wens Foodstuff is expected to under-perform the Ye Chiu. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Wens Foodstuff is 2.71 times less risky than Ye Chiu. The stock trades about -0.11 of its potential returns per unit of risk. The Ye Chiu Metal is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 266.00 in Ye Chiu Metal on September 25, 2024 and sell it today you would lose (7.00) from holding Ye Chiu Metal or give up 2.63% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Guangdong Wens Foodstuff vs. Ye Chiu Metal
Performance |
Timeline |
Guangdong Wens Foodstuff |
Ye Chiu Metal |
Guangdong Wens and Ye Chiu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangdong Wens and Ye Chiu
The main advantage of trading using opposite Guangdong Wens and Ye Chiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Wens position performs unexpectedly, Ye Chiu 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 Ye Chiu will offset losses from the drop in Ye Chiu's long position.Guangdong Wens vs. Ming Yang Smart | Guangdong Wens vs. 159681 | Guangdong Wens vs. 159005 | Guangdong Wens vs. Loctek Ergonomic Technology |
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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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