Correlation Between Guangzhou Dongfang and GRG Banking
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By analyzing existing cross correlation between Guangzhou Dongfang Hotel and GRG Banking Equipment, you can compare the effects of market volatilities on Guangzhou Dongfang and GRG Banking 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 GRG Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Dongfang and GRG Banking.
Diversification Opportunities for Guangzhou Dongfang and GRG Banking
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and GRG is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Dongfang Hotel and GRG Banking Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRG Banking Equipment 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 GRG Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRG Banking Equipment has no effect on the direction of Guangzhou Dongfang i.e., Guangzhou Dongfang and GRG Banking go up and down completely randomly.
Pair Corralation between Guangzhou Dongfang and GRG Banking
Assuming the 90 days trading horizon Guangzhou Dongfang is expected to generate 1.17 times less return on investment than GRG Banking. In addition to that, Guangzhou Dongfang is 1.01 times more volatile than GRG Banking Equipment. It trades about 0.06 of its total potential returns per unit of risk. GRG Banking Equipment is currently generating about 0.08 per unit of volatility. If you would invest 1,061 in GRG Banking Equipment on September 1, 2024 and sell it today you would earn a total of 245.00 from holding GRG Banking Equipment or generate 23.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Dongfang Hotel vs. GRG Banking Equipment
Performance |
| Timeline |
| Guangzhou Dongfang Hotel |
| GRG Banking Equipment |
Guangzhou Dongfang and GRG Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Dongfang and GRG Banking
The main advantage of trading using opposite Guangzhou Dongfang and GRG Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Dongfang position performs unexpectedly, GRG Banking 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 GRG Banking will offset losses from the drop in GRG Banking's long position.| Guangzhou Dongfang vs. Songz Automobile Air | Guangzhou Dongfang vs. Zhejiang Publishing Media | Guangzhou Dongfang vs. Xinhua Winshare Publishing | Guangzhou Dongfang vs. Haima Automobile Group |
| GRG Banking vs. Semiconductor Manufacturing Intl | GRG Banking vs. Anhui Conch Cement | GRG Banking vs. Sungrow Power Supply | GRG Banking vs. Shenzhen New Nanshan |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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