Correlation Between Guangzhou Dongfang and INKON Life
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By analyzing existing cross correlation between Guangzhou Dongfang Hotel and INKON Life Technology, you can compare the effects of market volatilities on Guangzhou Dongfang and INKON Life 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 INKON Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Dongfang and INKON Life.
Diversification Opportunities for Guangzhou Dongfang and INKON Life
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and INKON is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Dongfang Hotel and INKON Life Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INKON Life Technology 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 INKON Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INKON Life Technology has no effect on the direction of Guangzhou Dongfang i.e., Guangzhou Dongfang and INKON Life go up and down completely randomly.
Pair Corralation between Guangzhou Dongfang and INKON Life
Assuming the 90 days trading horizon Guangzhou Dongfang Hotel is expected to generate 0.92 times more return on investment than INKON Life. However, Guangzhou Dongfang Hotel is 1.09 times less risky than INKON Life. It trades about 0.01 of its potential returns per unit of risk. INKON Life Technology is currently generating about -0.17 per unit of risk. If you would invest 1,057 in Guangzhou Dongfang Hotel on September 13, 2024 and sell it today you would earn a total of 2.00 from holding Guangzhou Dongfang Hotel or generate 0.19% 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. INKON Life Technology
Performance |
| Timeline |
| Guangzhou Dongfang Hotel |
| INKON Life Technology |
Guangzhou Dongfang and INKON Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Dongfang and INKON Life
The main advantage of trading using opposite Guangzhou Dongfang and INKON Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Dongfang position performs unexpectedly, INKON Life 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 INKON Life will offset losses from the drop in INKON Life's long position.| Guangzhou Dongfang vs. Ming Yang Smart | Guangzhou Dongfang vs. 159681 | Guangzhou Dongfang vs. 159005 | Guangzhou Dongfang vs. Loctek Ergonomic Technology |
| INKON Life vs. Industrial and Commercial | INKON Life vs. China Construction Bank | INKON Life vs. Agricultural Bank of | INKON Life vs. Bank of China |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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