Correlation Between Servyou Software and Guangzhou Zhujiang
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By analyzing existing cross correlation between Servyou Software Group and Guangzhou Zhujiang Brewery, you can compare the effects of market volatilities on Servyou Software and Guangzhou Zhujiang 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 Servyou Software with a short position of Guangzhou Zhujiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Servyou Software and Guangzhou Zhujiang.
Diversification Opportunities for Servyou Software and Guangzhou Zhujiang
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Servyou and Guangzhou is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Servyou Software Group and Guangzhou Zhujiang Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Zhujiang and Servyou Software 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 Servyou Software Group are associated (or correlated) with Guangzhou Zhujiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Zhujiang has no effect on the direction of Servyou Software i.e., Servyou Software and Guangzhou Zhujiang go up and down completely randomly.
Pair Corralation between Servyou Software and Guangzhou Zhujiang
Assuming the 90 days trading horizon Servyou Software is expected to generate 1.24 times less return on investment than Guangzhou Zhujiang. In addition to that, Servyou Software is 1.94 times more volatile than Guangzhou Zhujiang Brewery. It trades about 0.02 of its total potential returns per unit of risk. Guangzhou Zhujiang Brewery is currently generating about 0.04 per unit of volatility. If you would invest 816.00 in Guangzhou Zhujiang Brewery on September 21, 2024 and sell it today you would earn a total of 129.00 from holding Guangzhou Zhujiang Brewery or generate 15.81% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Servyou Software Group vs. Guangzhou Zhujiang Brewery
Performance |
Timeline |
Servyou Software |
Guangzhou Zhujiang |
Servyou Software and Guangzhou Zhujiang Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Servyou Software and Guangzhou Zhujiang
The main advantage of trading using opposite Servyou Software and Guangzhou Zhujiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Servyou Software position performs unexpectedly, Guangzhou Zhujiang 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 Guangzhou Zhujiang will offset losses from the drop in Guangzhou Zhujiang's long position.Servyou Software vs. Ming Yang Smart | Servyou Software vs. 159681 | Servyou Software vs. 159005 | Servyou Software 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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