Correlation Between Guangzhou Dongfang and Yantai Moon
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By analyzing existing cross correlation between Guangzhou Dongfang Hotel and Yantai Moon Co, you can compare the effects of market volatilities on Guangzhou Dongfang and Yantai Moon 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 Guangzhou Dongfang with a short position of Yantai Moon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Dongfang and Yantai Moon.
Diversification Opportunities for Guangzhou Dongfang and Yantai Moon
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Yantai is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Dongfang Hotel and Yantai Moon Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yantai Moon and Guangzhou Dongfang 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 Guangzhou Dongfang Hotel are associated (or correlated) with Yantai Moon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yantai Moon has no effect on the direction of Guangzhou Dongfang i.e., Guangzhou Dongfang and Yantai Moon go up and down completely randomly.
Pair Corralation between Guangzhou Dongfang and Yantai Moon
Assuming the 90 days trading horizon Guangzhou Dongfang Hotel is expected to generate 1.24 times more return on investment than Yantai Moon. However, Guangzhou Dongfang is 1.24 times more volatile than Yantai Moon Co. It trades about 0.02 of its potential returns per unit of risk. Yantai Moon Co is currently generating about -0.05 per unit of risk. If you would invest 1,032 in Guangzhou Dongfang Hotel on September 12, 2024 and sell it today you would lose (2.00) from holding Guangzhou Dongfang Hotel or give up 0.19% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Guangzhou Dongfang Hotel vs. Yantai Moon Co
Performance |
Timeline |
Guangzhou Dongfang Hotel |
Yantai Moon |
Guangzhou Dongfang and Yantai Moon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangzhou Dongfang and Yantai Moon
The main advantage of trading using opposite Guangzhou Dongfang and Yantai Moon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Dongfang position performs unexpectedly, Yantai Moon 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 Yantai Moon will offset losses from the drop in Yantai Moon's long position.Guangzhou Dongfang vs. Lutian Machinery Co | Guangzhou Dongfang vs. PetroChina Co Ltd | Guangzhou Dongfang vs. Bank of China | Guangzhou Dongfang vs. Gansu Jiu Steel |
Yantai Moon vs. Peoples Insurance of | Yantai Moon vs. Lonkey Industrial Co | Yantai Moon vs. Guangzhou Dongfang Hotel | Yantai Moon vs. Hengli Industrial Development |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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