Correlation Between Metallurgical and Guangdong Shenglu
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By analyzing existing cross correlation between Metallurgical of and Guangdong Shenglu Telecommunication, you can compare the effects of market volatilities on Metallurgical and Guangdong Shenglu 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 Metallurgical with a short position of Guangdong Shenglu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metallurgical and Guangdong Shenglu.
Diversification Opportunities for Metallurgical and Guangdong Shenglu
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Metallurgical and Guangdong is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Metallurgical of and Guangdong Shenglu Telecommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Shenglu and Metallurgical 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 Metallurgical of are associated (or correlated) with Guangdong Shenglu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Shenglu has no effect on the direction of Metallurgical i.e., Metallurgical and Guangdong Shenglu go up and down completely randomly.
Pair Corralation between Metallurgical and Guangdong Shenglu
Assuming the 90 days trading horizon Metallurgical of is expected to generate 0.63 times more return on investment than Guangdong Shenglu. However, Metallurgical of is 1.59 times less risky than Guangdong Shenglu. It trades about 0.02 of its potential returns per unit of risk. Guangdong Shenglu Telecommunication is currently generating about -0.02 per unit of risk. If you would invest 316.00 in Metallurgical of on September 26, 2024 and sell it today you would earn a total of 21.00 from holding Metallurgical of or generate 6.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Metallurgical of vs. Guangdong Shenglu Telecommunic
Performance |
Timeline |
Metallurgical |
Guangdong Shenglu |
Metallurgical and Guangdong Shenglu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Metallurgical and Guangdong Shenglu
The main advantage of trading using opposite Metallurgical and Guangdong Shenglu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metallurgical position performs unexpectedly, Guangdong Shenglu 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 Shenglu will offset losses from the drop in Guangdong Shenglu's long position.Metallurgical vs. Ming Yang Smart | Metallurgical vs. 159681 | Metallurgical vs. 159005 | Metallurgical 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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