Correlation Between Guangzhou Dongfang and Allwin Telecommunicatio
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou Dongfang Hotel and Allwin Telecommunication Co, you can compare the effects of market volatilities on Guangzhou Dongfang and Allwin Telecommunicatio 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 Allwin Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Dongfang and Allwin Telecommunicatio.
Diversification Opportunities for Guangzhou Dongfang and Allwin Telecommunicatio
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Allwin is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Dongfang Hotel and Allwin Telecommunication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allwin Telecommunicatio 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 Allwin Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allwin Telecommunicatio has no effect on the direction of Guangzhou Dongfang i.e., Guangzhou Dongfang and Allwin Telecommunicatio go up and down completely randomly.
Pair Corralation between Guangzhou Dongfang and Allwin Telecommunicatio
Assuming the 90 days trading horizon Guangzhou Dongfang Hotel is expected to generate 0.47 times more return on investment than Allwin Telecommunicatio. However, Guangzhou Dongfang Hotel is 2.14 times less risky than Allwin Telecommunicatio. It trades about -0.03 of its potential returns per unit of risk. Allwin Telecommunication Co is currently generating about -0.11 per unit of risk. If you would invest 1,012 in Guangzhou Dongfang Hotel on August 29, 2024 and sell it today you would lose (14.00) from holding Guangzhou Dongfang Hotel or give up 1.38% 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. Allwin Telecommunication Co
Performance |
| Timeline |
| Guangzhou Dongfang Hotel |
| Allwin Telecommunicatio |
Guangzhou Dongfang and Allwin Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Dongfang and Allwin Telecommunicatio
The main advantage of trading using opposite Guangzhou Dongfang and Allwin Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Dongfang position performs unexpectedly, Allwin Telecommunicatio 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 Allwin Telecommunicatio will offset losses from the drop in Allwin Telecommunicatio's long position.| Guangzhou Dongfang vs. Agricultural Bank of | Guangzhou Dongfang vs. Industrial and Commercial | Guangzhou Dongfang vs. Bank of China | Guangzhou Dongfang vs. China Construction Bank |
| Allwin Telecommunicatio vs. Anhui Deli Household | Allwin Telecommunicatio vs. Soyea Technology Co | Allwin Telecommunicatio vs. Holitech Technology Co | Allwin Telecommunicatio vs. Jahen Household Products |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |