Correlation Between Zhuhai Port and Guangdong Xiongsu
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By analyzing existing cross correlation between Zhuhai Port Co and Guangdong Xiongsu Technology, you can compare the effects of market volatilities on Zhuhai Port and Guangdong Xiongsu 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 Zhuhai Port with a short position of Guangdong Xiongsu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhuhai Port and Guangdong Xiongsu.
Diversification Opportunities for Zhuhai Port and Guangdong Xiongsu
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhuhai and Guangdong is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Zhuhai Port Co and Guangdong Xiongsu Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Xiongsu and Zhuhai Port 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 Zhuhai Port Co are associated (or correlated) with Guangdong Xiongsu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Xiongsu has no effect on the direction of Zhuhai Port i.e., Zhuhai Port and Guangdong Xiongsu go up and down completely randomly.
Pair Corralation between Zhuhai Port and Guangdong Xiongsu
Assuming the 90 days trading horizon Zhuhai Port is expected to generate 3.26 times less return on investment than Guangdong Xiongsu. But when comparing it to its historical volatility, Zhuhai Port Co is 2.99 times less risky than Guangdong Xiongsu. It trades about 0.06 of its potential returns per unit of risk. Guangdong Xiongsu Technology is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 589.00 in Guangdong Xiongsu Technology on September 3, 2024 and sell it today you would earn a total of 185.00 from holding Guangdong Xiongsu Technology or generate 31.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhuhai Port Co vs. Guangdong Xiongsu Technology
Performance |
| Timeline |
| Zhuhai Port |
| Guangdong Xiongsu |
Zhuhai Port and Guangdong Xiongsu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhuhai Port and Guangdong Xiongsu
The main advantage of trading using opposite Zhuhai Port and Guangdong Xiongsu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhuhai Port position performs unexpectedly, Guangdong Xiongsu 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 Xiongsu will offset losses from the drop in Guangdong Xiongsu's long position.| Zhuhai Port vs. Road Environment Technology | Zhuhai Port vs. Xinhua Winshare Publishing | Zhuhai Port vs. Dazhong Transportation Group | Zhuhai Port vs. Shaanxi Broadcast TV |
| Guangdong Xiongsu vs. Super Dragon Engineering Plastics | Guangdong Xiongsu vs. Renxin New Material | Guangdong Xiongsu vs. Hangzhou Gaoxin Rubber | Guangdong Xiongsu vs. GRINM Semiconductor Materials |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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