Correlation Between Guangdong Cellwise and Flat Glass
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By analyzing existing cross correlation between Guangdong Cellwise Microelectronics and Flat Glass Group, you can compare the effects of market volatilities on Guangdong Cellwise and Flat Glass 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 Cellwise with a short position of Flat Glass. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Cellwise and Flat Glass.
Diversification Opportunities for Guangdong Cellwise and Flat Glass
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Flat is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Cellwise Microelectr and Flat Glass Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flat Glass Group and Guangdong Cellwise 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 Cellwise Microelectronics are associated (or correlated) with Flat Glass. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flat Glass Group has no effect on the direction of Guangdong Cellwise i.e., Guangdong Cellwise and Flat Glass go up and down completely randomly.
Pair Corralation between Guangdong Cellwise and Flat Glass
Assuming the 90 days trading horizon Guangdong Cellwise Microelectronics is expected to generate 1.28 times more return on investment than Flat Glass. However, Guangdong Cellwise is 1.28 times more volatile than Flat Glass Group. It trades about 0.19 of its potential returns per unit of risk. Flat Glass Group is currently generating about -0.33 per unit of risk. If you would invest 4,866 in Guangdong Cellwise Microelectronics on September 24, 2024 and sell it today you would earn a total of 505.00 from holding Guangdong Cellwise Microelectronics or generate 10.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Guangdong Cellwise Microelectr vs. Flat Glass Group
Performance |
Timeline |
Guangdong Cellwise |
Flat Glass Group |
Guangdong Cellwise and Flat Glass Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangdong Cellwise and Flat Glass
The main advantage of trading using opposite Guangdong Cellwise and Flat Glass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Cellwise position performs unexpectedly, Flat Glass 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 Flat Glass will offset losses from the drop in Flat Glass' long position.Guangdong Cellwise vs. Jiangsu Broadcasting Cable | Guangdong Cellwise vs. Zhengping RoadBridge Constr | Guangdong Cellwise vs. Hainan Haiqi Transportation | Guangdong Cellwise vs. Chengdu Spaceon Electronics |
Flat Glass vs. Zhejiang Construction Investment | Flat Glass vs. Kunwu Jiuding Investment | Flat Glass vs. Metro Investment Development | Flat Glass vs. Xiandai Investment Co |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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