Correlation Between Lander Sports and Guangxi Guitang
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By analyzing existing cross correlation between Lander Sports Development and Guangxi Guitang Group, you can compare the effects of market volatilities on Lander Sports and Guangxi Guitang 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 Lander Sports with a short position of Guangxi Guitang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lander Sports and Guangxi Guitang.
Diversification Opportunities for Lander Sports and Guangxi Guitang
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lander and Guangxi is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Lander Sports Development and Guangxi Guitang Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangxi Guitang Group and Lander Sports 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 Lander Sports Development are associated (or correlated) with Guangxi Guitang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangxi Guitang Group has no effect on the direction of Lander Sports i.e., Lander Sports and Guangxi Guitang go up and down completely randomly.
Pair Corralation between Lander Sports and Guangxi Guitang
Assuming the 90 days trading horizon Lander Sports is expected to generate 1.6 times less return on investment than Guangxi Guitang. But when comparing it to its historical volatility, Lander Sports Development is 2.01 times less risky than Guangxi Guitang. It trades about 0.32 of its potential returns per unit of risk. Guangxi Guitang Group is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 953.00 in Guangxi Guitang Group on September 14, 2024 and sell it today you would earn a total of 450.00 from holding Guangxi Guitang Group or generate 47.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Lander Sports Development vs. Guangxi Guitang Group
Performance |
| Timeline |
| Lander Sports Development |
| Guangxi Guitang Group |
Lander Sports and Guangxi Guitang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lander Sports and Guangxi Guitang
The main advantage of trading using opposite Lander Sports and Guangxi Guitang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lander Sports position performs unexpectedly, Guangxi Guitang 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 Guangxi Guitang will offset losses from the drop in Guangxi Guitang's long position.| Lander Sports vs. China Life Insurance | Lander Sports vs. Cinda Securities Co | Lander Sports vs. Piotech Inc A | Lander Sports vs. Dongxing Sec Co |
| Guangxi Guitang vs. Lander Sports Development | Guangxi Guitang vs. Bomesc Offshore Engineering | Guangxi Guitang vs. China Sports Industry | Guangxi Guitang vs. Haima Automobile Group |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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