Correlation Between Guangxi Guitang and Lander Sports
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By analyzing existing cross correlation between Guangxi Guitang Group and Lander Sports Development, you can compare the effects of market volatilities on Guangxi Guitang and Lander Sports 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 Guangxi Guitang with a short position of Lander Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Guitang and Lander Sports.
Diversification Opportunities for Guangxi Guitang and Lander Sports
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangxi and Lander is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Guitang Group and Lander Sports Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lander Sports Development and Guangxi Guitang 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 Guangxi Guitang Group are associated (or correlated) with Lander Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lander Sports Development has no effect on the direction of Guangxi Guitang i.e., Guangxi Guitang and Lander Sports go up and down completely randomly.
Pair Corralation between Guangxi Guitang and Lander Sports
Assuming the 90 days trading horizon Guangxi Guitang Group is expected to generate 1.06 times more return on investment than Lander Sports. However, Guangxi Guitang is 1.06 times more volatile than Lander Sports Development. It trades about 0.08 of its potential returns per unit of risk. Lander Sports Development is currently generating about 0.04 per unit of risk. If you would invest 559.00 in Guangxi Guitang Group on September 14, 2024 and sell it today you would earn a total of 844.00 from holding Guangxi Guitang Group or generate 150.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Guangxi Guitang Group vs. Lander Sports Development
Performance |
| Timeline |
| Guangxi Guitang Group |
| Lander Sports Development |
Guangxi Guitang and Lander Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Guitang and Lander Sports
The main advantage of trading using opposite Guangxi Guitang and Lander Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Guitang position performs unexpectedly, Lander Sports 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 Lander Sports will offset losses from the drop in Lander Sports' long position.| Guangxi Guitang vs. Lander Sports Development | Guangxi Guitang vs. Bomesc Offshore Engineering | Guangxi Guitang vs. China Sports Industry | Guangxi Guitang vs. Haima Automobile Group |
| Lander Sports vs. China Life Insurance | Lander Sports vs. Cinda Securities Co | Lander Sports vs. Piotech Inc A | Lander Sports vs. Dongxing Sec Co |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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